Oil prices slip after jumping nearly 3% in previous session

Oil prices slipped on Thursday in Asia after jumping nearly 3% in the previous session.

US Crude Oil WTI Futures dropped 0.2% to $56.84 by 11:57 PM ET (03:17 GMT). International Brent Oil Futures also fell 0.3%.

The gains overnight were largely due to a smaller-than-expected build in weekly US crude stockpiles.

The Energy Information Administration reported that crude stockpiles rose by 1.38 million barrels for the week ended Nov. 15. The market was expecting a build of about 1.54 million barrels, according to forecasts compiled by Investing.com.

Gasoline inventories rose by about 1.8 million barrels, versus analysts’ expectations for a rise of 870,000 barrels. Distillate stockpiles fell by about 1 million barrels, compared with forecasts for a decline of about 730,000 barrels.

Concerns that a phase one Sino-US trade deal might not be signed this year sent equities and other risk assets down today.

Conflict between Washington and Beijing escalated once again after the U.S. chamber passed two bills to protect human rights in Hong Kong. Citing a source familiar with the matter, Bloomberg said U.S. President Donald Trump is expected to sign the bills.

The signing of a partial trade deal was already in doubt after Trump said late last week that he did not agree to roll back existing tariffs on Chinese goods. Yesterday, the president threatened that he would raise the tariffs even higher.

However, China’s chief negotiator said on Wednesday night that he was “cautiously optimistic” about reaching a phase one trade deal with the U.S. despite tensions over Hong Kong.