Oil prices have remained steady due to industry worries about increasing supplies and hints of slowing demand.
Brent crude LCOc1 futures were down 3 cents at $62.36 a barrel, while US West Texas Intermediate (WTI) crude futures slipped 2 cents at $56.47 a barrel, reported Reuters.
An unexpected 2.4 million barrel build in US crude stocks last week and a speedy recovery of Saudi production capacity after the attack on Aramco oil facilities, led to a fall in oil prices earlier.
US President Donald Trump said that China wanted to make a deal very badly and noted that the deal could happen sooner than expected. A limited trade deal was also signed by Trump and Japan Prime Minister Shinzo Abe in a bid to open up Japanese markets to some $7bn worth of US products per annum.
OANDA Asia Pacific senior market analyst Jeffrey Halley was quoted by Reuters as saying: “There’s not too much to be cheery about on oil markets today.
“Saudi Arabia is restoring production much faster than expected (and) the EIA crude inventories came in higher.”
Both Brent and WTI benchmarks have fallen to their lowest level since the terrorist attack on two oil facilities in Saudi Arabia.
CMC Markets market analyst Margaret Yang said: “Fundamentally, a much weaker than expected Germany manufacturer PMI data painted a tepid outlook for energy demand.”
Yang also noted that the bearish outlook is further strengthened by a rise in crude stocks in the US in the past weeks.