Oil inches down as inventory data counters trade deal hopes

LONDON, REUTERS: Oil prices ticked down on Wednesday as data suggesting a smaller-than-expected fall in US crude inventories countered support from hopes for a US-China trade deal. 

Brent crude futures were down 46 cents at $ 61.68 a barrel by 1042 GMT. 

US West Texas Intermediate crude fell 3 cents to $ 53.87 a barrel. On Tuesday, it had recorded its biggest daily rise since early January. 

After weeks of swelling, US crude stocks fell by 812,000 barrels last week to 482 million, industry group the American Petroleum Institute said on Tuesday, a smaller fall than the 1.1 million barrel drop analysts had expected.  PVM said a price rally had run out of steam “as concerns over bulging US oil stockpiles return to the fore”. Estimates on US crude stockpiles from the US Energy Information Administration are due on Wednesday. 

US President Donald Trump offered some support, by saying preparations were starting for him to meet Chinese President Xi Jinping next week at the G20 summit in Osaka, Japan. 

Talks between the United States and China broke down last month after Washington accused the Chinese of backing away from previously agreed commitments.