Oil prices slip despite signs of trade hope

Oil prices slipped on Tuesday in Asia despite positive comments from the US and China on trade talk progress.

The US Crude Oil WTI Futures slipped 0.1% to $57.97 by 1:15 AM ET (05:15 GMT). International Brent Oil Futures also inched down 0.1% to $62.57.

The Global Times, China’s state-owned newspaper, said the two nations are “moving closer to agreeing” on a phase one trade deal.

However, the newspaper noted that Beijing’s insistence that Washington roll back the Trump administration’s tariffs has been a major sticking point.

Also supporting markets was a statement released by China’s Ministry of Commerce, which said top negotiator on trade Liu He talked with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Tuesday morning.

“Both sides discussed resolving core issues of common concern, reached consensus on how to resolve related problems (and) agreed to stay in contact over remaining issues for a phase one agreement,” the Chinese-language statement said.

The phone call followed a previous encounter earlier this month, which the ministry called “constructive.”

The announcement came after China announced at the weekend that it would seek to improve protections for intellectual property rights, which had been a sticking point in the talks and one of the main US asks.

The Organization of the Petroleum Exporting Countries will meet on Dec. 5 and is expected to extend output cuts to the end of 2020.