Oil prices have witnessed a drop on doubts of trade discussions between the world’s two largest economies, the US and China.
International Brent crude oil futures were at $60.53 a barrel at 31 cents below their last close, while US West Texas Intermediate (WTI) futures were down 37 cents at $53.42 a barrel, Reuters reported.
Apart from doubts over trade discussions, data from China fueled further concerns with regard to a weak economy that is expected to affect fuel demand.
US President Donald Trump tweeted that he would soon meet Chinese President Xi Jinping to put an end to the trade war between the two countries, boosting global markets.
The news agency further quoted Trump saying: “This is either going to be a very big deal, or it’s going to be a deal that we’ll just postpone for a little while.”
Furthermore, oil prices were weighed down by a survey that showed a reduction in China’s industrial activity by the most in almost three years last month amid slumping orders.
As China is a primary consumer of fuels such as diesel, such a slowdown is expected to hit fuel demand.
Meanwhile, due to sanctions imposed by the US on Venezuela’s state oil firm PDVSA, ports in the country are loaded with tankers as refineries in the US cut back operations.
Citi said: “An additional 350,000bpd of Venezuelan oil output is at risk due to the lack of US diluents, a result of the US product exports ban with immediate effect.”