Oil declined for the first time in three days as an industry report showing an increase in American crude stockpiles offset optimism that a limited U.S.-China trade deal is getting closer.

Futures fell as much as 0.4% in New York after rising 1.1% over the previous two sessions. The American Petroleum Institute reported inventories swelled by 3.64 million barrels last week, according to people familiar with the data. Official government figures due Wednesday are forecast to show supplies slid for the first time in five weeks.

West Texas Intermediate for January delivery dropped 13 cents, or 0.2%, to $58.28 on the New York Mercantile Exchange as of 1:10 p.m. in Singapore. The contract closed 0.7% higher on Tuesday.

Brent for January settlement lost 0.2% to $64.15 a barrel on the London-based ICE Futures Europe Exchange after climbing 1% in the previous session. The global benchmark traded at a $5.87 premium to WTI.

Source : Bloomberg