WTI trades at fresh monthly highs above $56.80

• Renewed trade optimism supports crude oil prices on Monday.
• OPEC+ is expected to discuss deeper output cuts in December.

Crude oil prices rose sharply last week boosted by heightened expectations for deeper supply cuts and falling crude oil stocks in the United States.

After adding 5.5% last week, the barrel of West Texas Intermediate (WTI) started the new week under a modest pressure after Russia's deputy energy minister on Monday said that they will "factor in" the slowdown of the oil production in the United States and added that it was too premature to talk about deeper output cuts. 

Sentiment improves on trade headlines

Although the WTI fell toward the $56 handle earlier in the session, it gained traction, once again, on easing fears over the potential negative impact of a protracted US-China trade dispute on the global energy demand growth. 

US President Donald Trump on Monday said that they were "ahead of schedule" to sign the phase one of the US-China trade deal and added that he was expecting them to sign the deal at the APEC meeting in Chile. Boosted by these comments, the WTI advanced to its highest level since late September at $56.88 and was last seen trading at $56.80, up 0.4% on a daily basis.

Technical levels to watch for