Oil prices have edged down due to concerns about global growth and slowing demand despite reported progress on trade war negotiations between the US and China.
Brent crude futures LCOc1 declined 18 cents at $60.20 a barrel, while US West Texas Intermediate (WTI) futures CLc1 slipped 14 cents at $54.95 a barrel, Reuters reported.
The economic impact of the trade dispute between the US and China has left investors shrugging off a strong commitment from the Organisation of the Petroleum Exporting Countries (OPEC) producers to cut down output.
McKenna Macro strategist Greg McKenna was quoted by Reuters as saying: “Again it is a battle between the forces of OPEC and those of slowing global growth and thus demand.”
Around 80% of more than 60 economists said that by the end of 2020, trade relations between Washington and Beijing would either worsen or remain the same.
US President Donald Trump said that he would not rule out an interim deal with China with regard to trade and added that he prefers a comprehensive agreement. Following signs of progress in trade talks between the two countries, Asian stocks also advanced.
A new stimulus package announced by the European Central Bank (ECB) also helped to counter concerns about global economic slowdown. The package has been designed to prevent the eurozone sliding into recession.
Concern on whether the President could achieve progress on the trade war has overshadowed agreement by the oil cartel to cut production by requesting Iraq and Nigeria to bring back their production in line with targets.