Oil held losses as the U.S. and China’s inability to agree on a schedule for trade talks boosted demand pessimism, while data showed OPEC producers raised output for the first time this year in August.
Futures edged higher in London after dropping 2.9% Monday. Chinese and U.S. officials have yet to agree on the basic terms of re-engagement after the latest round of tariff increases, with mistrust on both sides, according to people familiar with the discussions. Crude output from the Organization of Petroleum Exporting Countries climbed 0.7% in August from July, a Bloomberg survey showed, despite the group’s efforts to ease a glut.
WTI for October delivery declined 7 cents from Friday’s close to $55.03 a barrel on the New York Mercantile Exchange. Trades made in Monday’s session will be booked for settlement on Tuesday because of the U.S. Labor Day holiday. The U.S. benchmark crude traded at a $4.06 discount to Brent for the same month.--With assistance from James Thornhill.