SEOUL, Nov 6 (Reuters) - Oil prices dropped on Wednesday
after industry data showed a larger-than-expected build-up in
U.S. crude stockpiles, but expectations for an easing of trade
tensions between the United State and China capped losses.
Brent crude futures LCOc1 were at $62.73 a barrel by 0120
GMT, down 23 cents, or 0.4%, from their previous settlement.
Brent settled up 1.3% at $62.96 a barrel.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell
21 cents, or 0.4%, from their last close to $57.05 per barrel.
In the previous session, WTI settled 1.2% higher at $57.23 a
barrel.
U.S. crude inventories rose by 4.3 million barrels in the
week ended Nov. 1 to 440.5 million barrels, according to data
from the American Petroleum Institute (API) released on Tuesday.
That was nearly triple analysts' forecast for an increase of 1.5
million barrels. API/S
Official data from the Energy Information Administration
(EIA) is due later on Wednesday.
However, hopes for a breakthrough on trade in talks between
the United States and China, the world's two biggest oil
consumers, remained and kept price falls in check.
China is pushing U.S. President Donald Trump to drop more
tariffs imposed on Beijing as part of a 'Phase One' U.S.-China
trade deal, according to people familiar with the negotiations.
"Investors will continue to take cues from U.S.-China trade
talks," ANZ Research said in a note.
Looking ahead, next year's oil market outlook may have
upside potential, Mohammad Barkindo, Secretary-General of the
Organization of the Petroleum Exporting Countries (OPEC) said on
Tuesday. But in the next five years, OPEC would supply a diminishing
amount of oil, squeezed by rising U.S. shale output and other
rival sources, according to the oil producer group's 2019 World
Oil Outlook, released on Tuesday. OPEC and its partners, including Russia, previously agreed
to cut oil production by 1.2 million barrels per day (bpd) until
March 2020. They will meet in early December to review output
policy.