Oil prices fell on Thursday to erase some of the previous session’s strong gains, as traders wait for the G20 summit in Japan and for a meeting of OPEC and other crude producers to decide on an extension of output cuts.
Brent crude futures were down 42 cents, or 0.6 per cent, at 66.07 dollars by 0658 GMT.
U.S. West Texas Intermediate (WTI) crude futures were down 33 cents, or 0.6 per cent, at 59.05 dollars.
Oil prices rose more than 2 per cent on Wednesday to their highest in about a month, buoyed by U.S. government data showing a larger-than-expected drawdown in crude stocks as exports hit a record-high and surprise drops in refined product stockpiles.
However, traders said concerns that a hoped-for breakthrough on trade at the G20 may not eventuate and some nervousness about continued output cuts were crimping follow-through buying.
Edward Moya, senior market analyst at OANDA said that Investors are split as what to expect from the G20, a positive reset to trade talks could do wonders in the short-term for the demand-side argument for higher crude prices.
U.S. President Donald Trump will meet with Chinese President Xi Jinping at the Group of 20 summit that starts on Friday in Osaka, Japan to seek a breakthrough in negotiations to end a trade war that has been hitting global economic growth.
Trump said on Wednesday that a deal was possible but also spoke of a Plan B that would involve reducing business ties with China.
Almost immediately after the G20 summit ends on Saturday, the Organisation of the Petroleum Exporting Countries (OPEC) meets on Monday to discuss an extension of production cuts to support prices.
(NAN)