Oil slid after surging the most in almost a month on Friday amid doubts that recent progress in the U.S.-China trade talks will compensate for a worsening global demand outlook.
Futures in New York fell as much as 2.6% after gaining 2.2% in the previous session. Washington and Beijing made several concessions to reach a partial trade deal last week, and China wants further talks as soon as the end of October to hammer out the details of the “phase one” trade deal touted by Donald Trump. Prices gained on Friday as an attack on an Iranian crude tanker in the Red Sea stoked tension in the Middle East.
WTI for November delivery dropped $1.13 cents, or 2.1%, to $53.57 a barrel on the New York Mercantile Exchange as of 8:20 a.m. local time. It advanced $1.15 on Friday, the most since Sept. 16, capping a weekly gain of 3.6%.
Brent crude for December settlement fell $1.12, or 1.9%, to $59.39 a barrel on the ICE Futures Europe Exchange after climbing 2.4% on Friday. The global benchmark traded at a premium of $5.68 to WTI for the same month.
Source : Bloomberg