Oil costs eased Monday as traders took profit forward of fresh European and U.S. economic data, regardless of hopes for some resolution to the U.S.-China trade battle that has hurt global economic progress and curled energy demand.
Prices jumped around $2 a barrel Friday after the world’s prime two economies stated they’d made progress on trade discussions while U.S. officers said the settlement might be signed this month.
Brent crude futures for January dropped 31 cents to $61.38 a barrel, while December U.S. crude futures was at $55.91 per barrel, down 29 cents.
The US and the EU are set to reveal manufacturing data on Monday with more U.S. and Chinese data to emerge later in the week.
Nonetheless, a drop in the U.S. rig count for a second consecutive week and an upbeat U.S. jobs report supported oil prices last week. Independent producers pare spending after record production weighed on the scope for energy prices.
Besides, underpinning U.S. crude prices was a shutdown of the Keystone pipeline that sends Canadian heavy crude to the United States. Owner TC Energy Corp stated Friday work was underway to plug the pipeline in North Dakota.
Production cuts by the Organization of the Petroleum Exporting Countries, Russia, and other producers – alliance known as OPEC+ – since January to reduce oil production by 1.2 million barrels a day are further propping up prices.
Nonetheless, Russia again missed its production cut target in October, energy ministry information showed Saturday.
OPEC’s output recovered in October from an eight-year low after a rapid rebound in Saudi Arabia’s production from strikes on its oil base in September offset losses in Ecuador and voluntary cuts under the agreement.