Petroleum prices dropped on Wednesday as worries about a possible delay in resolving the U.S.-China trade war, which has hurt global oil demand, competed with a price-supporting drop in U.S. crude inventories.
Information released Wednesday by the U.S. Energy Information Administration showed crude inventories increased by 5.7 million barrels from the previous week. The EIA also said U.S. inventories are now at 438.9 million barrels, which is about 1% above the five-year average for this time of year.
Prices for Brent crude were down 19 cents, at $61.40 U.S. a barrel. U.S. West Texas Intermediate crude faded 41 cents, or 0.7%, at $55.13 a barrel.
An official with the Trump administration reported the United States and China were continuing to work on an interim trade agreement, but it may not be completed in time for U.S. and Chinese leaders to sign it next month.
U.S. crude inventories fell by 708,000 barrels in the week ended Oct. 25 to 436 million, compared with analysts’ expectations for an increase of 494,000 barrels, according to the American Petroleum Institute.
Still, crude stocks at the delivery point for WTI at Cushing, Oklahoma were up 1.2 million barrels compared to the previous week, dragging on futures prices for the benchmark.
