Oil price growth stagnates on China trade worries after two-month highs
Oil prices fell on Friday after previously hitting two-month highs, negating the week’s gains as fears over China-US trade talks were reignited.
Brent crude oil futures fell by 1 per cent to end Friday on $63.39 a barrel, despite hitting a high of $64.27 earlier in the day.
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West Texas Intermediate crude suffered slightly more, falling 1.4 per cent t end the session on $57.77 per barrell.
After parring their gains for the week, both benchmarks ended the week little changed.
It comes following increased uncertainty over whether the United States and China will be able to reach a partial trade deal that would lift some pressure on the global economy.
Speaking on Friday, Chinese President Xi Jinping said China wants to work out an initial trade pact with the United States and has been trying to avoid a trade war but is not afraid to retaliate when necessary.
China has invited US trade negotiators for further face-to-face talks in Beijing as efforts continue to strike some kind of initial deal, the Wall Street Journal reported on Thursday.
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Prices had rallied to their highest since late September on Thursday after reports that the Organization of the Petroleum Exporting Countries (OPEC) and Russia are likely to extend existing production cuts by three more months to mid-2020.
However the tension between China and the US created some selling pressure among investors and kept a lid on prices.