Oil extended declines on signs the U.S. and China still have some work to do to finalize a limited trade deal and as analysts forecast a fifth weekly increase in American crude stockpiles.
Futures in New York fell as much as 0.6% after dropping 2% on Monday. Beijing said it wants to hold more talks this month to hammer out details of the “phase one” trade agreement touted by U.S. President Donald Trump. U.S. inventories rose by 3.1 million barrels last week, according to the median estimate in a Bloomberg survey, before the official data due Wednesday.
West Texas Intermediate for November delivery fell 27 cents, or 0.5%, to $53.32 a barrel on the New York Mercantile Exchange as of 10 a.m. in Singapore. It dropped $1.11 on Monday, wiping out most of Friday's $1.15 increase.
Brent crude for December settlement declined 29 cents, or 0.5%, to $59.06 a barrel on the London-based ICE Futures Europe Exchange. The global benchmark crude traded at a premium of $5.70 a barrel to WTI for the same month.
Source : Bloomberg