1 month ago
Commodities

Oil Prices Retreat from 3-Month Highs, Next Round of Trade Talks in Focus

Investing.com - Oil prices pulled back from three-month highs on Tuesday, as investors awaited news from the latest round of

Investing.com - Oil prices pulled back from three-month highs on Tuesday, as investors awaited news from the latest round of U.S.-China trade talks.

New York-traded West Texas Intermediate crude futures fell 24 cents, or 0.43%, at $55.74 a barrel by 9:30 AM ET (14:30 GMT), after hitting $56.73 a day earlier, its best level since November of last year.

Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., traded down 83 cents, or 1.25%, to $65.67. Monday’s peak of $66.83 was also its best level since last November.

A new round of U.S.-Sino trade talks kicked off in Washington on Tuesday with further sessions amid higher level officials expected later in the week.

The trade dispute between the world’s two largest economies has been widely blamed for a lack of business confidence, hindering growth amid the uncertainty and taking its toll on the outlook for oil demand. The World Trade Organization warned on Tuesday that its quarterly leading indicator for global trade had slumped to its lowest reading in nine years and would likely fall further if tensions continued.

But investors were optimistic after comments from officials that last week’s negotiations in Beijing had resulted in progress on major sticking points between the two parties.

“The market is slowly regaining its bullish footing, subject to the perception of economic risks tied to U.S.-China trade talks," Harry Tchilinguirian, global head of commodity markets strategy at BNP Paribas, said.

In other energy trading, gasoline futures fell 0.89% to $1.5589 a gallon by 9:33 AM ET (14:33 GMT), while heating oil declined 1.29% to $1.9942 a gallon.

Lastly, natural gas futures edged forward 0.11% to $2.628 per million British thermal unit.

-- Reuters contributed to this report.