Oil prices fell on Tuesday as Washington’s blacklisting of more Chinese companies dampened hopes for a trade deal between the two countries, though unrest in Iraq and Ecuador lent some support to crude prices, Trend üith reference to Reuters reports.
Brent crude LCOc1 fell 19 cents to $58.16 a barrel by 1035 GMT. U.S. West Texas Intermediate crude CLc1 was at $52.48, down 27 cents. Both had risen almost 1% earlier in the day.
Investors are treading cautiously before U.S.-China trade talks that take place in Washington on Thursday, although prospects for progress dimmed after Washington blacklisted more Chinese firms and President Donald Trump said a quick trade deal was unlikely.
“It is impossible to predict the outcome of the talks. Anything seems possible – from a partial agreement to another truce or indeed a complete breakdown of the talks. The spectrum of potential price reactions is correspondingly large,” said Carsten Fritsch, analyst at Commerzbank.
Hedge funds sold petroleum futures and options for a second week running as a price bounce after attacks last month on Saudi oil facilities evaporated, and attention shifted to a deteriorating global economy.
Saudi oil production was temporarily reduced by the attacks. Riyadh said last week it had fully restored output.