Brent crude futures fell 14 cents, or 0.2%, to $60.87 a barrel at 0005 GMT. The US West Texas Intermediate crude (WTI) contract for November delivery, which expires on Tuesday, was cut 0.1% to $57.45. The more active December contract fell 13 cents, or 0.2%, to $56.89.
US President Donald Trump said on Monday that he expects to be able to reach a fair trade deal with Chinese President Xi Jinping. Disputes over tariffs, technology and market access remain unresolved ahead of their planned meeting next week in South Korea.
“I think in the end we’re going to have a very strong trade deal. We’re both going to be happy with it,” Trump said.
Ritterbusch and Associates said in a note that the near-term trading position for crude oil remains bearish, favoring selling at price increases rather than buying at price declines.
“But we also believe that enough geopolitical uncertainty remains to offset occasional oil balances that are turning more negative every week,” she added. U.S. crude inventories likely rose last week, a preliminary Reuters poll showed on Monday, ahead of weekly reports from the American Petroleum Institute and the Energy Information Administration. [EIA/S] In Russia, the Rosneft-controlled Novokuibyshevsk refinery in the Volga region halted primary crude oil processing on Sunday after a drone attack. In addition, an attack on the Orenburg gas plant forced neighboring Kazakhstan to reduce production from the Karachaganak oil and gas condensate field by 25 to 30 percent.
Ambiguity surrounding Russia’s oil supply continues as Trump reiterated that India could face “massive” tariffs unless the country stops purchasing Russian crude. Following Western sanctions on Moscow, India has become the main buyer of competitively priced Russian oil.
Oil prices have fallen in part due to last week’s bearish outlook from the International Energy Agency, which predicted the global oil market could face a surplus of nearly 4 million barrels per day by 2026 as OPEC+ producers and rivals ramp up production while demand remains weak.
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