Oil prices have declined on fresh tensions over the ongoing trade deal prospects between the US and China that the long-awaited deal may get delayed further.
Brent crude futures were down $0.22 to $62.18 a barrel, while West Texas Intermediate (WTI) crude futures fell $0.20 at $56.81 a barrel, reported Reuters. Trade experts have cautioned that the first phase of a trade deal between the two biggest economies is likely to slide into 2020.
The US House of Representatives have passed two bills, which are intended to support protesters in Hong Kong and send a warning to China about human rights. US President Donald Trump is expected to sign them into law, irrespective of the trade talks with China.
Frame Funds Sydney portfolio manager Hue Frame was quoted by Reuters as saying: “Overnight we saw a rebound of about 3% in crude futures after a reduction in US inventories.
“The volatility today can be attributed to concerns surrounding the ‘phase one’ of the US-China trade deal being delayed into 2020.”
Trump also revealed his plans to raise taxes on Chinese imports if a trade deal is not reached between the two nations which hindered the global economic growth prospects.
Data released by the Energy Information Administration (EIA) highlighted an increase in US crude inventories by a less-than-expected 1.4 million barrels (Mmbbls) in the week ended 15 November. Crude stocks at the US delivery hub of Cushing, Oklahoma were down by 2.3Mmbbls.
Meanwhile, Russia President Vladimir Putin said that Russia and the OPEC allied countries share a common goal of oil supply, and noted that Moscow will further cooperate on the continuation of a global supply cuts deal.