By Florence Tan
SINGAPORE, Nov 22 (Reuters) - Oil prices were toppled from
their highest in nearly two months on Friday by doubts over
future demand for crude as uncertainty continues to shroud a
potential U.S.-China trade deal, and along with it the health of
the global economy.
That was more than enough to offset news of a likely
extension of production cuts among major producers that drove
prices higher in the previous session on the prospect of tight
crude supply.
By 0159 GMT, Brent crude futures LCOc1 had slid 30 cents,
or 0.5%, to $63.67 a barrel. West Texas Intermediate crude
CLc1 was at $58.24 a barrel, down 34 cents or 0.6%.
"The key factor for the demand outlook for oil is the
(U.S.-China) trade negotiation currently going on," said Michael
McCarthy, chief market strategist at CMC Markets and
Stockbroking in Sydney.
"With oil near the top of recent trading ranges it's no
surprise to see a bit of selling pressure during the session
today."
Prices had touched their highest since late September on
Thursday after Reuters reported that the Organization of the
Petroleum Exporting Countries (OPEC) and Russia are likely to
extend existing production cuts by another three months to
mid-2020 when they meet on Dec. 5. Oil was also buoyed by comments from China's commerce
ministry on Thursday that it will strive to reach an initial
agreement with the United States to end the pair's long-running
trade war, allaying fears that talks might be unravelling.
However, the completion of a phase one deal could slide into
next year. News that last week saw the biggest drawdown in three months
for U.S. crude stock stockpiles at Cushing, Oklahoma also
underpinned prices earlier this week. Cushing is the delivery
point for WTI futures. EIA/S
Elsewhere, traders are also keeping a keen eye on the impact
on oil production at OPEC countries Iran and Iraq amid ongoing
protests.