Petroleum prices hovered around $64 U.S. a barrel on Wednesday as an industry report showing a surprise boost in U.S. crude inventories, but losses were offset by optimism about a U.S.-China trade deal.
Data revealed Wednesday by the U.S. Energy Information Administration revealed inventories rose by 1.6 million for the week ending November 22, the fifth straight week of inventory build.
Brent crude futures fell four cents to trade at $64.23 U.S. a barrel, while U.S. West Texas Intermediate crude fell nine cents to trade at $58.32 U,S. a barrel.
Oil had risen for the last two days on expectations that China and the United States, the world’s two biggest crude oil users, would soon sign a preliminary agreement beginning an end to their 16-month trade dispute.
Expectations that the Organization of the Petroleum Exporting Countries and allies such as Russia will maintain their deal to restrain supply are also supporting prices.
The producers, known as OPEC+, hold their next oil policy review meetings on Dec. 5-6 in Vienna. They are expected to extend their supply cut agreement further into 2020.
