The oil price is now on track to rack up its 7th straight day of gains on the back of optimism that the United States and China can reach an agreement on the current trade talks which has caused a global slowdown and a reduction in demand.

Trade talks are now entering their 4th day and the US president has promised that if he is not happy with the outcome, he will move ahead with more tariffs against China which will likely bring a halt to oils recent gains and see the recent downtrend continue.

The new tariffs will increase from 25 percent from 10 percent on $200 billion worth of Chinese goods at a time when China’s economy is already suffering because of the tariffs already in place.

"After a dreadful December for risk markets, Crude oil continues to catch a positive vibe," he added.

"I think as long as the global economy isn't collapsing, we should be able to climb a little bit higher, but it is going to be very fragile because the biggest, biggest uncertainty right now is the trade war going on between the U.S. and China,"  said Amrita Sen, chief oil analyst at research firm Energy Aspects

"At current levels, based on current fundamentals, the market is oversold," Sen said. "But it doesn't mean that it's going to correct straightaway, right? It can still take some time, unless and until you have the clarity, particularly with the trade talks over today and tomorrow." She added.