Oil prices drop as hopes for US-China trade progress wilt

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Oil prices drop as hopes for US-China trade progress wilt
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Oil prices slide as hopes fade for any significant progress in high-level US-China trade talks set to start later on Thursday

FILE PHOTO: Pumpjacks are seen against the setting sun at the Daqing oil field in Heilongjiang province, China December 7, 2018. Picture taken on December 7, 2018.

Global benchmark Brent crude futures LCOc1 fell 26 cents, or 0.5%, to $58.05 a barrel by 0133 GMT, while US West Texas Intermediate crude CLc1 was at $52.38 per barrel, down 21 cents, a 0.4% drop. US President Donald Trump expressed optimism on Wednesday, saying there was a very good chance the two sides will reach a trade agreement. But with high-level trade discussions set to start later on Thursday, the South China Morning Post reported the pair had made no progress in preliminary, lower-level talks.

“Traders likely have their finger to the wind trying to gauge the intensity of the latest headwinds but at minimum prices could be capped until the markets get some type of favourable headline tailwind at least,” Innes said

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