Oil prices fell about one percent on Thursday as no straightforward signs of a resolution emerged from U.S.-Chinese trade talks.
Official data again highlighted vast fuel stocks in the United States.
Brent crude was down nearly one percent, or 60 cents, to $60.84 per barrel at 1400 GMT. U.S. crude was at $51.65 per barrel, down 71 cents or 1.4%. Both benchmarks rose by around 5% the previous day.
Global financial markets had surged on hopes that Washington and Beijing may soon end the trade war between the two economic giants.
But the upbeat mood was dampened after the two sides each issued only mildly positive statements that lacked concrete details. This move ended a four-day rally in share markets and pushing the U.S. dollar to a near three-month low.
Rising output has led to swelling fuel inventories and has countered efforts led by the OPEC to cut supply.
START TRADINGForex – Commodities – One percent down for oil prices on open trade talks
China and the United States have extended trade talks in Beijing, boosting oil prices and broader sentiment.
The dollar index was steady at 95.22, after losing 0.7 percent on Wednesday. It has weakened in four out of the last five sessions as traders wager that US interest rates will stay steady in 2019.
The euro consolidated gains on Thursday after posting its biggest daily jump in more than six months. The dovish FED minutes gave dollar bears a further excuse to buy the euro. The euro surged to a high of $1.1581 overnight, its highest level since mid-October. Subsequently, it trimmed some of its gains and settled at $1.1532, broadly steady on the day. The surge in the euro took some traders by surprise who had added some big stop losses around the $1.15 levels.
Sterling hit a one-week low against the euro on Thursday. The British Prime Minister lost two parliamentary votes in two days. Thus, Theresa May added more Brexit uncertainty and raised the prospect she may soon face a general election.
Sterling reached a one-week low against the euro of 90.59 pence, down 0.3 percent on the day. It also dropped 0.40 percent against the dollar to $1.2737. Expectations for sterling price swings have also diminished in the last few sessions. Investors now expect less implied volatility over a one-month period.
Sources: Reuters, Investing, CNN money
PLEASE NOTE The information above is not investment advice.