Oil prices were mixed on Wednesday in Asia
Oil prices were mixed on Wednesday in Asia, with the international Brent oil futures retreating from a three-month high as traders await more news on Chinese Trade Talks.
U.S. Crude Oil WTI Futures were higher by 0.1% to $56.51 by 01:00 AM ET (06:00 GMT).
International Brent Oil Futures fall 0.1% to $66.38. It hit $66.83 on Tuesday, its best level since last November.
Investor sentiment improved somewhat on Tuesday. This was after U.S. President Donald Trump said that trade talks with China are going well, and that the current March deadline is not a “magical date.” Also, he told reporters that he is willing to extend.
Last week, he told reporters that he is willing to extend the deadline if China and the U.S. get closer to a deal.
The world’s two largest economies began their latest round of trade talks this week in Washington to resolve their trade spat. Further sessions amid higher level officials are expected in the coming days, according to a White House statement over the weekend.
The trade dispute between the world’s two largest economies has been widely blamed for a lack of business confidence, hindering growth amid the uncertainty and taking its toll on the outlook for oil demand.
The World Trade Organization warned on Tuesday that its quarterly leading indicator for global trade had slumped to its lowest reading in nine years and would likely fall further if tensions continued.
Meanwhile, supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) were continued to be cited as supporting crude oil prices.
OPEC as well as some non-affiliated producers such as Russia agreed late last year to cut output by 1.2 million barrels per day (bpd) to prevent a large supply overhang from swelling.