After the Washington and Beijing agreement .. oil closes slightly

Oil prices fell slightly after the Washington and Beijing agreement

Oil prices retreated slightly on Wednesday, as it came under pressure from data showing increases in stocks of refined products in the United States, but recovered from some losses after the signing of the stage 1 trade agreement between Washington and Beijing.


Brent crude contracts ended the trading session low 49 cents, or 0.8 percent, to settle at $ 64 a barrel, while US West Texas Intermediate crude contracts fell 42 cents, or 0.7 percent, to close at $ 57.81.

Traders said that oil prices had reduced their initial losses due to "the optimistic atmosphere surrounding the US-China trade agreement and expectations that oil demand will remain strong."

Earlier in the session, crude prices fell to their lowest levels in more than a month after the US administration announced a significant increase in gasoline and distillate inventories and a record high level of oil production in the United States.


Data from the US Energy Information Administration showed that gasoline stocks in the world's largest economy rose last week to their highest level since February 2019, while distillate inventories jumped to the highest level since September 2017.

The two benchmarks were also hit by a report from the Organization of Petroleum Exporting Countries (OPEC) that it expected demand for its oil to decline in 2020 even as global demand rises, as competing producers seize market share.

OPEC and non-OPEC producers, including Russia, are holding back production to prevent an oil glut and support for crude prices above $ 60 a barrel, while their current deal ends in March.