Oil prices eased on Monday as scant details on the first phase of a trade deal between the United States and China undercut last week’s optimism over a U.S.-Sino thaw that helped to lift crude markets by 2% at the end of last week.
Brent crude futures LCOc1 fell by 69 cents to $59.82 a barrel by 0730 GMT, while U.S. West Texas Intermediate (WTI) crude futures CLc1 was at $54.09 a barrel, down 61 cents.
“Oil is slowly giving up its recent gains as mini-trade deal scepticism is growing,” Edward Moya, senior market analyst at OANDA, said in an email.
“Since it will take about a month to finalize this partial deal, traders are remembering that we have seen things fall apart in shorter time periods,” Moya said.
The emergence of a phase one trade deal between the United States and China and a goodwill move by Washington to suspend threatened tariffs on Chinese products had initially lifted global financial markets on Monday.