Oil stocks rose in overnight trading. Murphy up 4%; Devon, Occidental up more than 3%; BP, ConocoPhillips, Shell up over 2%.

Oil prices rose around 2% on Wednesday, as the market drew some strength from the possibility of trade talks between China and the United States and a report that Iraq will cut oil production in April.

Brent crude futures rose 121 cents, or 1.87%, to $65.88 a barrel while U.S. West Texas Intermediate crude was up 116 cents, or 1.91%, at $61.91.

Prices rose after a Bloomberg report quoted an anonymous source as saying that China wants more respect from the Trump administration before it will agree to talks, analysts said.

Adding to bullish sentiment in the oil market on Wednesday, Iraq aims to cut April output by 70,000 barrels per day in April in the face of pressure to meet its OPEC+ targets, Bloomberg reported.