Oil prices edge up on U.S.-China trade optimism, but demand concerns cap

SEOUL, Oct 22 (Reuters) - Oil prices steadied a little on
Tuesday, supported by signs of progress in talks on resolving
the U.S.-China trade dispute, but gains were contained by
lingering anxiety a slowdown in the global economy could hurt
crude demand.
Brent crude futures LCOc1 were at $59.10 a barrel by 0027
GMT, up 14 cents, or 0.2%, from their previous settlement. Brent
settled down 0.8% at $58.96.
U.S. West Texas Intermediate (WTI) crude CLc1 futures
advanced 18 cents, or 0.3%, from their last close to $53.49 per
barrel. In the previous session, WTI settled 0.9 lower at $53.31
a barrel.
U.S. President Donald Trump on Monday said efforts to end a
U.S. trade war with China were going well as negotiators from
the two nations work to nail down a Phase 1 trade deal text for
their leaders to sign next month when they meet at November's
APEC summit.
"Commodity markets were cautiously optimistic amid signs
that a trade deal was close to being signed by the United States
and China," ANZ bank said in a note.
"Crude oil prices remained in the doldrums, with ongoing
economic weakness weighing on sentiment," ANZ Bank added.
Brent is down about 22% from its April peak, while WTI is
down around 20% from its peak reached in April.
Although there are some signs of easing tensions between the
world's two largest economies, U.S. Commerce Secretary Wilbur
Ross said on Monday that an initial trade deal doesn't need to
be finalised next month, emphasising the need to get the right
deal.
That raises the risk of further prolonged negotiations and
feed market anxiety about the prospects for a durable deal.
Adding to tensions, China is seeking $2.4 billion in retaliatory
sanctions against the United States for non-compliance with a
WTO ruling in a tariffs case dating back to the era of President
Barack Obama, a document showed. On the supply side, U.S. crude stockpiles were expected to
have increased for the sixth straight week, while distillates
and gasoline stocks likely fell in the week to Oct.18, a
preliminary Reuters poll showed on Monday.