Oil fell from its 2019 high of almost $67 a barrel on Tuesday as concerns about the progress of U.S.-China trade talks and slowing economic growth countered lower supplies, Trend reports referring to Reuters.
Supply cuts led by the Organization of the Petroleum Exporting Countries have helped crude to rise more than 20 percent this year, although demand-side worries remain the main drag on the market.
Brent crude slipped 64 cents to $65.86 a barrel by 1435 GMT, having reached a 2019 high of $66.83 on Monday. U.S. crude was down 26 cents at $55.33.
“The market is slowly regaining its bullish footing, subject to the perception of economic risks tied to U.S.-China trade talks,” said Harry Tchilinguirian, global head of commodity markets strategy at BNP Paribas.
More talks between the United States and China to resolve their trade dispute will take place on Tuesday. Traders said they were cautious on taking large new positions before the outcome of the talks.
“If they falter, we run the risk of sell-offs like we had in December,” Tchilinguirian said.
In a further warning sign about the economic outlook, Europe’s biggest bank HSBC warned it may delay some investments this year as it missed 2018 profit forecasts due to slowing growth in China and Britain.