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Oil slips as lack of U.S.-China trade talk progress frays investor nerves

Published 11/19/2019, 09:51 AM
Updated 11/19/2019, 09:56 AM
© Reuters. Oil slips as lack of U.S.-China trade talk progress frays investor nerves
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By Seng Li Peng
SINGAPORE, Nov 19 (Reuters) - U.S. oil prices fell for the
second straight day on Tuesday amid market jitters over limited
progress between China and the United States on rolling back
trade tariffs, exacerbated by a rise in U.S. inventories.
West Texas Intermediate (WTI) crude CLc1 fell 10 cents or
0.18% to $56.95 a barrel by 0148 GMT, falling again from an
eight-week high hit last Friday when hopes for the trade deal
rose.
Brent crude futures LCOc1 were down 12 cents, or 0.19%, at
$62.32.
A Chinese government source was quoted by broadcaster CNBC
on Monday as saying there was gloom in Beijing about prospects
for a trade deal, with Chinese officials troubled by U.S.
President Donald Trump's comment that there was no agreement on
phasing out tariffs. "We had reports overnight that the mood in Beijing was
pessimistic," said Michael McCarthy, chief market strategist at
brokerage CMC Markets in Sydney. "The lack of announcement is
really concerning for the demand outlook ... the market is very
nervous about the trade talks."
The lingering trade battle that has seen the world's two
biggest economies impose tit-for-tat tariffs on each other has
hit global growth prospects and clouded the outlook for future
oil demand.
Meanwhile a preliminary Reuters poll on Monday showing U.S.
crude oil stockpile were seen rising for the fourth straight
week also squeezed prices. "Unless we get further concrete signs of global growth rally
or an extension in production cuts by OPEC+ (the Organization of
the Petroleum Exporting Countries and associated producers
including Russia), WTI will struggle to attempt to recapture the
$60-a-barrel mark," said Edward Moya, senior market analyst at
OANDA in New York.


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