Oil prices have slipped due to huge build in US crude stocks after hopes of an US-China trade deal.
Brent crude futures were at $62.60 a barrel, down 36 cents, while US West Texas Intermediate (WTI) crude futures fell 29 cents, to $56.94 a barrel, reported Reuters.
OANDA senior market analyst Jeffrey Halley was quoted by Reuters as saying: “This morning’s price action suggests that Asia is being more circumspect about oil and is concerned that bearish news was ignored entirely overnight.”
As per the data from the American Petroleum Institute (API), US crude inventories rose by 4.3 million barrels to 440.5 million barrels. However, hopes remain for trade negotiations between the US and China.
Reuters cited ANZ Research as saying: “Investors will continue to take cues from US-China trade talks.”
Organization of the Petroleum Exporting Countries (OPEC) Secretary-General Mohammad Barkindo noted that 2020’s oil production outlook could have upside potential in the market.
According to World Oil Outlook, OPEC may reduce its oil supply over the next five years due to rising US shale output.
In order to support the market, the OPEC+ alliance agreed to cut oil production by 1.2Mbpd through March 2020. OPEC and its partners, including Russia will review output policy in early December 2019.