Crude oil futures edged lower on Tuesday amid expectations official data from Energy Information Administration (EIA) will likely show a notable jump in crude inventories last week.
The EIA’s data is due out Wednesday morning. Before that, the American Petroleum Institute (API) will release its weekly oil report later today.
West Texas Intermediate Crude oil futures for December ended down $0.27, or about 0.5%, at $55.54 a barrel, the lowest settlement in a week.
On Monday, WTI Crude oil futures for December ended down $0.85, or 1.5%, at $55.81 a barrel, snapping a four-day winning streak.
A bit of profit taking after last week’s steep rise too contributed to oil’s decline in Tuesday’s session.
Also, recent data showing a drop in profits of China’s industrial firms weighed on the commodity.
Traders were also tracking news on U.S.-China trade front. U.S. President Donald Trump commented on Monday that the first phase of a trade pact with China could be signed “ahead of schedule” and the aim was to sign the accord at the APEC summit between him and Xi in Chile next month.
The United States Trade Representative said it is studying whether to extend tariff suspensions on $34 billion of Chinese goods set to expire later in December.
Meanwhile, a report from Reuters citing a U.S. administration official said the United States and China are continuing to work on an interim trade agreement, but it may not be completed in time for the U.S. and Chinese leaders to sign it in Chile next month.