West Texas Intermediate futures futures traded in New York fell 9 cents, or 0.2%, to $ 56.05 a barrel from 6:52 AM ET (10:52 GMT), while Brent futures benchmark Oil prices outside the US fell 5 cents, or 0.1%, to $ 59.69.
Oil prices fell slightly on Tuesday after surging last day, as news tapping on the US and US trade fronts kept major movements in check and markets prepared for weekly data on US crude inventories.
Monday’s drop in oil prices was attributed to a positive reading of developments between Washington and Beijing after White House economic adviser Larry Kudlow outlined a timetable for further negotiations.
Trade considerations aside, caution reigned in front of weekly inventory data.
The American Petroleum Institute will release its weekly report on US crude stocks amid expectations of a 1.89 million barrel draw.
“The US-China trade space has been at the center of a disruption to the oil market, which has sent the global economy on the brink of recession and negatively impacted oil demand forecasts,” said Stephen Innes, managing partner at VM Markets. , on a note. “This current rally is shaping up to be more about optimism in US-China trade than an increased awareness of supply risks.”
“A sudden surge could happen, possibly removing the wind from oil cruises, if only temporarily,” said Jeffrey Halley, market strategist at Oanda.
Prices fell 3% after last week’s official data from the Energy Information Administration showed a surprise buildup.
In other energy trading, gasoline futures lost 0.2% to $ 1,6614 a gallon by 6:54 AM ET (10:54 GMT), while heating oil advanced 0.2% to $ 1,8361 a gallon.
Finally, futures for natural gas traded down 0.5% to $ 2,199 per million British thermal units./Investing.com