Oil prices have declined more than 1% due to the lack of any clear resolution to the trade talks between the US and China.

International Brent crude futures LCOc1 fell 1.3% at $60.65 a barrel, while US West Texas Intermediate (WTI) crude oil futures CLc1 were at $51.66 a barrel, a decrease of 1.3%, Reuters reported.

In addition, official data again indicated large fuel stocks in the US led to a reduction in oil prices.

The latest negotiations between both countries concluded with mildly positive statements from both sides.

In a statement, the US Trade Representative’s offices said that the two sides discussed ‘ways to achieve fairness, reciprocity and balance in trade relations’.

“The latest negotiations between both countries concluded with mildly positive statements from both sides.”

Singapore-based Vanda Insights founder Vandana Hari told Reuters that oil prices dropped ‘as optimism fueled by the US-China trade talks earlier in the week appeared to have run its course, and official statements after the conclusion of three days of negotiations, while indicating modest progress, lacked details’.

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Meanwhile, US bank Morgan Stanley reduced its 2019 oil price forecasts by more than 10% this week, due to weakening economic growth expectations and rising oil supply, especially from the US.

According to the Energy Information Administration, US crude oil production remained at a record 11.7 million barrels a day in the week ending 4 January, which resulted in swelling fuel inventories.

An increase in US production runs counter to the Organization of the Petroleum Exporting Countries-led efforts to reduce supply and stop an emerging glut.