Oil prices have slipped as US-China trade war concerns outweighed a decline in US crude stocks.

Brent crude slipped $0.18 at $61.41 a barrel, while US West Texas Intermediate (WTI) crude was down $0.27 at $55.27 a barrel, reported Reuters.

Data released by the American Petroleum Institute (API) highlighted a decline of 708,000 barrels in US crude inventories to 436 million last week, against analyst expectations for a increase of 494,000 barrels.

CMC Markets Singapore market analyst Margaret Yang was quoted by Reuters as saying: “The market has largely ignored the decline in US crude inventories and assumed the demand side will remain weak in the foreseeable future as the global cyclical slowdown deepens.”

“Fading optimism over a US-China phase-one deal further weighed on oil prices as trade risks are set to rise.”

An interim trade deal between the US and China may not be ready for signing in Chile in November 2019, according to an official of the US administration. The latest potential setback in the trade talks hindered global share markets.

Russia’s deputy energy minister said that it was too early to take a call on the deeper output cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allied companies. Since January 2019, OPEC+ reduced output by 1.2Mbpd to support the market. The deal will run through March 2020.

Gasoline stocks in the US dropped by 4.7 million barrels (Mbbls) compared with analyst expectations for a 2.2 million barrels fall. Meanwhile, crude stocks at the Cushing, Oklahoma rose by 1.2Mbbls, as reported by API.