Oil prices have remained steady due to industry worries about increasing supplies and hints of slowing demand.
Brent crude LCOc1 futures were down 3 cents at $62.36 a barrel, while US West Texas Intermediate (WTI) crude futures slipped 2 cents at $56.47 a barrel, reported Reuters.
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An unexpected 2.4 million barrel build in US crude stocks last week and a speedy recovery of Saudi production capacity after the attack on Aramco oil facilities, led to a fall in oil prices earlier.
US President Donald Trump said that China wanted to make a deal very badly and noted that the deal could happen sooner than expected. A limited trade deal was also signed by Trump and Japan Prime Minister Shinzo Abe in a bid to open up Japanese markets to some $7bn worth of US products per annum.
OANDA Asia Pacific senior market analyst Jeffrey Halley was quoted by Reuters as saying: “There’s not too much to be cheery about on oil markets today.
“Saudi Arabia is restoring production much faster than expected (and) the EIA crude inventories came in higher.”
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By GlobalDataBoth Brent and WTI benchmarks have fallen to their lowest level since the terrorist attack on two oil facilities in Saudi Arabia.
CMC Markets market analyst Margaret Yang said: “Fundamentally, a much weaker than expected Germany manufacturer PMI data painted a tepid outlook for energy demand.”
Yang also noted that the bearish outlook is further strengthened by a rise in crude stocks in the US in the past weeks.
