Oil prices slipped on Wednesday on concerns that the pending Phase 1 trade deal between the United States and China, the world's biggest crude users, may not lead to more fuel demand as the U.S. intends to keep tariffs on Chinese goods in place.
U.S. Treasury Secretary Steven Mnuchin said late on Tuesday that the tariffs would remain even as a trade deal is set to be signed on Wednesday. That could temper China's oil demand growth by limiting its access to its second-largest trading partner. Chinese demand has been the main driver of global fuel consumption growth.
Concerns about increasing supply also pressured prices after a government report on Tuesday said that output from the U.S., currently the world's largest producer, will increase in 2020 by more than previously forecast. Additionally an industry report late on Tuesday said U.S. crude inventories increased last week.
Brent crude was down 21 cents, or 0.3%, at $64.28 per barrel by 0206 GMT. U.S. West Texas Intermediate crude futures were down 23 cents, or 0.4%, at $58.00 a barrel.
Source : Reuters