Oil dips for second day on lack of trade talk progress

TOKYO, Nov 12 (Reuters) - U.S. oil fell for a second day on
Tuesday, amid little sign of progress on U.S.-China trade talks,
while Saudi Arabian crude output rose, reinforcing concerns
about a glut.
U.S. West Texas Intermediate (WTI) crude CLc1 was down 20
cents, or 0.4%, at $56.66 a barrel by 0039 GMT. The contract
dropped 0.7% in the previous session.
Brent crude futures LCOc1 were yet to trade after falling
0.5% on Monday.
Worries about the impact on oil demand from the fallout of
the 16-month U.S.-China trade war, which has weighed on global
economic growth, have returned after doubts were cast on the
chances of a so-called phase one agreement.
U.S. President Donald Trump said on Saturday that talks with
China were moving along "very nicely" but the United States
would only make a deal if it was the right one for Washington.
He also there had been incorrect reporting about U.S.
willingness to lift tariffs. "Oil prices are struggling at the start of the week as trade
concerns derail some of the momentum we saw in October that a
phase one deal would deliver a boost for energy demand," said
Edward Moya, senior market strategist at OANDA.
Caution ruled in other markets ahead of a speech by U.S.
President Donald Trump to the Economic Club of New York later in
the day in case there was any new word on an agreement.
MKTS/GLOB
On the supply side, Saudi Arabia raised its oil output in
October to 10.3 million barrels per day (bpd), although it kept
its supplies to oil markets below its OPEC output target.
The Organization of the Petroleum Exporting Countries and
allies, a group known as OPEC+, will probably extend a deal to
limit crude supply but are unlikely to deepen their cuts, Oman's
energy minister said. OPEC+, which has cut output by 1.2 million bpd since January
under a deal set to last until March 2020, will next meet in
early December.
Elsewhere, U.S. data showed that crude inventories at
Cushing, the delivery point for WTI, fell about 1.2 million
barrels in the week to Nov. 8, traders said, citing market
intelligence firm Genscape.
Cushing inventories had grown for five weeks in a row
through Nov. 1, according to government data.