Oil prices have declined as investors await US crude inventory data to obtain more insight on trends in oil demand.
Brent LCOc1 futures slipped $0.30s at $61.27 a barrel, while US West Texas Intermediate (WTI) CLc1 crude declined $0.40 at $55.41 a barrel, reported Reuters.
Last week, oil prices increased due to a fall in US stockpiles, but worries about weaker economic growth had offset hopes of an increase in oil demand despite the progress in the trade negotiations between the US and China.
AxiTrader Asia Pacific market strategist Stephen Innes was quoted by Reuters as saying: “Where the market remains beaten down by demand concerns, traders could be waiting for signs that the economic data is bottoming and the inventory surpluses are decreasing before fully committing to the long risk-on positions.”
According to a Reuters poll of analysts, total crude inventories in the US were forecast to have increased by approximately 700,000 barrels last week. Reuters cited market intelligence firm Genscape as reporting that US inventory at Cushing, Oklahoma edged up by approximately 1.5 million barrels in the week that ended on 25 October.
Investors are awaiting industry data to be released by the American Petroleum Institute and the inventory data from the US Government’s Energy Information Administration. The United States Trade Representative (USTR) is in the process of deciding whether to extend tax suspensions on $34bn valued Chinese goods, set to expire on 28 December.
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US President Donald Trump said that he expects to sign a part of the trade deal with China ahead of schedule. The deal is expected to be signed with China’s President Xi Jinping in November at a summit being held in Chile.