New York — Oil prices edged lower on Monday as little progress on U.S.-China trade negotiations kept prices pressured, but bullish inventory data in the United States offered some support.
Brent crude futures lost 33 cents to settle at $62.18 a barrel, after falling to $61.57 earlier in the session. U.S. West Texas Intermediate (WTI) crude fell 38 cents to settle at $56.86 a barrel.
Investors are worried about fallout from the 16-month U.S.-China trade war, which has slowed economic growth around the world and prompted analysts to lower forecasts for oil demand, raising concerns that a supply glut could develop in 2020.
“We expect the sideward trading to continue for the time being, with the trade conflict headlines likely to dictate the direction,” Commerzbank said in a note.
U.S. President Donald Trump said on Saturday that trade talks with China were moving along “very nicely” but the United States would only make a deal if it was the right one for America.
Trump also said there had been incorrect reporting about U.S. willingness to lift tariffs as part of a “phase one” agreement, news of which had boosted markets.
Underlining the impact of the trade war, data over the weekend showed that China’s producer prices fell the most in more than three years in October.
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