Crude oil prices fell Thursday after a media report cast doubt on the possibility of an interim U.S.-China trade deal and as a meeting of the Opec+ producer alliance yielded no decision on deepening crude supply cuts.
Oil was pressured further after the European Central Bank cut its deposit rate to a record low -0.5% from -0.4%, and said it will restart bond purchases of 20 billion euros ($22.12 billion) a month beginning in November to prop up euro zone growth, Kallanish Energy reports.
Brent crude futures were down 74 cents, or 1.2%, at $60.07 a barrel by 1:54 p.m. EDT (1754 GMT). U.S. West Texas Intermediate crude futures fell 92 cents, or 1.7%, to $54.83/Bbl. Both were moving toward a third session of losses.
Both Brent and WTI fell below the $60 and $55 a barrel marks during the session, triggering auto-selling, Reuters reported.
Oil futures extended their losses after a senior White House official denied a Bloomberg News report the U.S. was considering a temporary trade agreement with China, according to CNBC.
The prospect that the world’s two largest economies made some concessions in a protracted trade war, according to a previous report, supported prices earlier in the session.
Also impacting oil prices were comments by Saudi Arabia’s new energy minister, Prince Abdulaziz bin Salman, who said deeper cuts would not be decided upon before a meeting of Opec planned for December.
The meeting yielded a promise to keep countries within the production quotas they committed to in a global supply deal, which would limit oil coming to the market as Nigeria, Iraq and Russia have, at times, produced more than their agreed-to allocations.
Prince Abdulaziz said Saudi Arabia would keep cutting by more than it pledged in the pact that has throttled supply from Opec+ by 1.2 million barrels per day.
Also feeding the bearish sentiment, the International Energy Agency said surging U.S. output would make balancing the market “daunting” in 2020.
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