OPEC chief says deeper oil cut an option amid weaker 2020 outlook

Crude Oil

Crude Oil

Chinese government officials told Reuters that China has lowered its expectations for progress in the talks to end a 15-month-old tit-for-tat trade dispute that has slowed global economic growth, upset by the USA blacklisting of Chinese companies.

U.S. President Donald Trump expressed optimism on Wednesday, saying there was a very good chance the two sides will reach a trade agreement.

Oil prices slid on Thursday as hopes faded for any significant progress in U.S.

Global benchmark Brent crude futures LCOc1 rose by 8 cents, or 0.14%, to $58.40 a barrel at 1125 GMT. U.S. West Texas Intermediate (WTI) futures CLc1 were up 10 cents, or 0.19%, at $52.69.

"No two ways about it, U.S".

"This jitteriness just goes to show how much emphasis the market places on the outcome of these talks in terms of the global economic outlook".

Prices were also weighed down by a report of rising stockpiles in the United States, now the world's biggest oil producer.

US crude stocks rose by 2.9 million barrels in the week to October 4, the Energy Information Administration (EIA) said on Wednesday, more than double analyst expectations.

A deeper cut in oil supplies is among options for OPEC and its allies to consider in December, its secretary general said on Thursday as the producer group's forecasts pointed to slower global growth and lower demand next year.

OPEC separately released its October monthly oil market report on Thursday in which it trimmed its forecast for world economic growth in 2020 to 3% from 3.1%, saying "it seems increasingly likely that the slowing growth momentum in the USA will carry over to 2020".

Additionally, the Organization of the Petroleum Exporting Countries (OPEC) quietly adjusted its production pact to allow Nigeria to raise its output, adding more supply.

"The oil market is neither bullish nor bearish".

"It would be stretching it to say that the market is paralyzed, but it is in a stalemate".

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