Oil unchanged after overnight losses amid caution over trade talks

SEOUL, Nov 7 (Reuters) - Oil prices were unchanged on
Thursday, holding on to most of their losses from the previous
session, on worries that a long-awaited interim deal to dial
back a crippling U.S.-China trade war could be delayed.
Brent crude futures LCOc1 were flat at $61.74 a barrel by
0158 GMT. Prices fell $1.22, or almost 2% on Wednesday.
West Texas Intermediate crude CLc1 futures were at $56.32
a barrel, down 3 cents from their last close. They settled 88
cents lower, or 1.54%, in the previous session on a
larger-than-expected build in stockpiles.
U.S. crude oil stockpiles rose 7.9 million barrels last week
as refiners cut output and exports fell, beating analysts'
expectations for an increase of 1.5 million barrels, the Energy
Information Administration (EIA) said on Wednesday. EIA/S
Gasoline and distillate inventories dropped 2.8 million
barrels and by 622,000 barrels respectively.
"The inventory builds and drops in exports is likely related
to the COSCO sanctions," said Stephen Innes, market strategist
at AxiTraders, referring to the Chinese tanker firm the United
States sanctioned, among others, in late September for alleged
involvement in moving crude oil from Iran. U.S. crude exports fell nearly 1 million barrels last week
to 2.4 million barrels per day. "The sanctions are coming back to haunt oil bulls as a
trifecta of negativity if you include the probable delay in
signing the Phase one trade deal" between the world's top two
economies and biggest oil consumers, Innes said.
A meeting between U.S. President Donald Trump and Chinese
President Xi Jinping to sign an interim deal could be delayed
until December as talks continue over terms and venue, a senior
official of the Trump administration told Reuters on Wednesday.
It was still possible the "phase one" agreement aimed at
ending a damaging trade war would not be reached, but a deal was
more likely than not, the official said on condition of
anonymity. Expectations for a thaw in trade tensions have supported oil
prices over the past several sessions.