Published: Thu, November 07, 2019
Markets | By Otis Pena

Oil unchanged after overnight losses amid caution over trade talks

Oil unchanged after overnight losses amid caution over trade talks

The decline reversed the gains of the previous three sessions.

Benchmark Brent crude rallied 1.2 percent to $62.49 a barrel, after having fallen nearly 2 percent on Wednesday.

Prices extended losses after Reuters reported a meeting between U.S. President Trump and Chinese President Xi Jinping to sign a long-awaited interim trade deal could be delayed until December, as discussions continue over terms and venue.

West Texas Intermediate for December delivery fell 88 cents to settle at $56.35 a barrel on the New York Mercantile Exchange.

U.S. crude oil refinery inputs decreased during the week ending November 1, the U.S. Energy Information Administration said Wednesday.

At 446.8 million barrels, US crude oil inventories are about 3 percent above the five year average for this time of year, it said.

Gasoline stocks fell by 2.8 million barrels, compared with analysts' expectations in a Reuters poll for a 1.8 million-barrel drop.

Disinformation, surveillance seen as growing threats to democracy
Only four countries-Iceland, Estonia, Canada, and Germany-scored 80 or above, with the United States garnering a score of 77. The countries where internet freedom decreased the most are Sudan, Kazakhstan, Brazil, Bangladesh, and Zimbabwe.

Oil gained earlier this week on optimism that trade tensions between the USA and China are easing, potentially alleviating downward pressure on the global economy and with it fuel demand. Negotiators are also discussing lowering the 25 percent duty on about $250 billion of imports that Trump imposed a year ago, the people said. The EIA reported that gasoline inventories dropped by 2.8 million barrels last week and distillate inventories dropped by 600,000 barrels.

Data on Wednesday showed Germany's services sector barely grew in October, while euro zone business activity expanded slightly faster than expected but remained close to stagnation.

Last year, US President Donald Trump exited the deal and renewed sanctions on Tehran, slashing Iran's economically vital crude oil sales by more than 80%.

Middle East tensions offered some support.

"Accordingly, conditions are ripe for tensions in the region to escalate and for the geopolitical risk premium to strike back with a vengeance".

John Kilduff, founding partner at Again Capital, remarked, "The crude market is much more skeptical about a deal", and he added that with further issues between the two countries oil prices are not going to rise now: "It's tough to surmount".

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