Oil extends losses after Trump's comments douse trade talk optimism

* Trump's China rebuke Sino-U.S. trade talks
* Saudi buys oil from Mideast producers for overseas
refineries -
sources
* API data shows surprise build in U.S. crude inventories
last
week

By Florence Tan
SINGAPORE, Sept 25 (Reuters) - Oil prices fell for a second
day on Wednesday on worries about falling fuel demand after U.S.
President Donald Trump's comments doused optimism over
China-U.S. trade talks and reignited concerns on global economic
growth.
Brent crude futures LCOc1 fell 46 cents to $62.64 a barrel
by 0104 GMT, while U.S. West Texas Intermediate crude CLc1
dropped to $56.89, down 40 cents.
Both prices have fallen to their lowest since before the
attack on Saudi Arabian oil facilities on Sept. 14.
"What really pulled the rug from underneath oil was Donald
Trump's comments on trade last night.... He's still maintaining
quite a belligerent position," said Jeffrey Halley, senior
market analyst for Asia Pacific at OANDA.
Trump criticised China's trade practices at the United
National General Assembly on Tuesday and said he would not
accept a "bad deal" in U.S.-China trade negotiations.
China is the world's largest oil importer and second-largest
crude user while the United States is the largest consumer.
Trump also said he saw a path to peace with Iran even as he
denounced Iran for "bloodlust", cooling geopolitical premiums in
oil prices.
Oil rallied last week following a crippling attack on Saudi
Arabia's oil installations that has disrupted supplies from the
world's top exporter. To meet its supply obligations to Saudi
refineries overseas, Saudi Aramco is buying oil from other
Middle East producers. "The risk premium has died off for now," Halley said, adding
that the main driver for oil markets now is trade uncertainty
that could impact demand.
Prices were also weighed down by an unexpected build in U.S.
crude inventories last week. API/S
U.S. crude inventories rose 1.4 million barrels last week,
the American Petroleum Institute said on Tuesday, compared with
analysts' forecasts of a 200,000-barrel drawdown.
Official government data from the U.S. Energy Information
Administration will be released later today.