Oil prices have slipped as uncertainty continues over the trade deal between the US and China that would lift some pressure on the economy worldwide.
Brent crude futures slipped $0.42 to $63.55 a barrel while West Texas Intermediate (WTI) crude was down $0.44 at $58.14 a barrel, reported Reuters.
The current indication is more than enough to offset news of a likely extension of production cuts by OPEC producers that lead to an increase in prices in the previous session on the prospect of tight crude supply.
The Wall Street Journal has cited unidentified sources as saying that the US trade deal negotiators were invited by China for a new phase of face-to-face talks in Beijing in an effort to strike a limited trade deal.
CMC Markets and Stockbroking Sydney chief market strategist Michael McCarthy was quoted by the news agency as saying: “The key factor for the demand outlook for oil is the (US-China) trade negotiation currently going on.
“With oil near the top of recent trading ranges it’s no surprise to see a bit of selling pressure during the session today.”
Oil prices also received some support on comments from China’s commerce that the country will strive to reach an initial deal with the US to end the trade dispute.
The initial trade deal, however, could slide into next year.
News on the drawdown of the US crude stock stockpiles at Cushing, Oklahoma, which is the delivery point for WTI futures, also supported oil prices.
Meanwhile, traders are keen to know the impact on oil production at OPEC countries Iran and Iraq about ongoing protests.