Oil Extends Losses Ahead Of Inventory Data

Oil prices fell for a second straight session on Tuesday as investors awaited U.S. crude inventory data for clues on oil demand trends.

Benchmark Brent crude fell as much as 1.5 percent to $60.63 a barrel, after having fallen 0.7 percent in the previous session.

U.S. West Texas Intermediate crude futures were down 1.25 percent at $55.12 a barrel, after falling 1.5 percent on Monday.

Traders are booking profits at higher levels after prices rose sharply last week following a surprise draw in U.S. crude stocks and amid signs of a de-escalation in U.S.-China trade tensions.

Markets remain beaten down by demand concerns after data showed that profits at China’s industrial firms contracted for the second straight month in September.

The American Petroleum Institute releases inventory data later today, while the U.S. government’s Energy Information Administration releases inventory data on Wednesday.

On the trade front, U.S. President Donald Trump on Monday said that the first phase of a trade pact with China could be signed “ahead of schedule” and the aim was to sign the accord at the APEC summit between him and Xi in Chile next month.

Trump and his Chinese counterpart Xi Jinping are scheduled to attend the Asia-Pacific Economic Cooperation forum on November 16-17 in Santiago, Chile. Trump described the pact as the first part of a process that could unfold in three phases.

The United States Trade Representative said it is studying whether to extend tariff suspensions on $34 billion of Chinese goods set to expire later in December.

The material has been provided by InstaForex Company – www.instaforex.com