Oil slipped toward 60 dollars a barrel on Thursday after a report showed U.S. crude inventories rose unexpectedly, although hopes of progress in resolving the U.S.-China trade row lent support.
Benchmark Brent crude was down 25 cents at 60.45 dollars a barrel by 0821 GMT, while U.S. West Texas Intermediate (WTI) crude fell 39 cents to 55.87 dollars.
“Oil prices remain range-bound despite yesterday’s rally,”
“API reported a modest increase in inventories on Wednesday, which failed to do much for oil prices,” said OANDA analyst Craig Erlam.
Crude had gained more than four per cent on Wednesday as positive Chinese economic data sparked a wider market rally.
On Thursday, China’s commerce ministry said Beijing and Washington agreed to hold high-level trade talks in early October.
The prolonged trade dispute has been a dampener on oil prices but Brent is still up 12 percent this year, helped by production cuts led by the Organisation of the Petroleum Exporting Countries and its allies including Russia.
Nonetheless, both OPEC and Russia boosted production in August, according to a Reuters survey.