Crude oil extended gains toward $61 a barrel in New York on signs China’s economy is stabilising, and as investors hope for a breakthrough in the country’s trade talks with the US, which will resume this week.

Crude futures rose as much as 1.3 per cent, following their strongest quarter since 2009. The dollar dropped after four days of gains, also helping crude go higher.

Positive risk sentiment as gauged by rising equity markets, and a weaker dollar are helping oil, UBS Group AG analyst Giovanni Staunovo wrote in a report.

Oil rallied 32 per cent in the first quarter as Saudi Arabia led the Organization of the Petroleum Exporting Countries and its allies in squeezing supplies to prevent a glut.

Unplanned supply losses from Venezuela and Iran have also helped prices rise, but the trade war between the world’s two biggest economies and signs of slowing global growth have limited further gains.

West Texas Intermediate for May delivery gained 1.1 per cent to $60.79 a barrel on the New York Mercantile Exchange at 8:50 am in London.

Brent for June settlement was 1.3 per cent higher at $68.48 on the London-based ICE Futures Europe exchange.

The global benchmark crude was at a premium of $7.54 to WTI for the same month.

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