Oil Drops More Than 1% on New Concerns Over US-China Trade War

Oil prices fell more than 1% on Monday amid concerns over the prospects of a trade deal between the United States and China, while worries about oversupply also weighed on the market.
Brent crude was down 69 cents, or 1.1%, at $61.82. The contract rose 1.3% last week, Reuters reported.
US crude was 63 cents, or 1.1%, lower at $56.61 a barrel, having risen 1.9% last week.
US President Donald Trump said Saturday that trade talks with China were moving along “very nicely,” but the United States would only make a deal with Beijing if it was the right one for America.
The 16-month trade war between the world’s two biggest economies has slowed economic growth around the world and prompted analysts to lower forecasts for oil demand, raising concerns that a supply glut could develop in 2020.
Trump also said there had been incorrect reporting about US willingness to lift tariffs as part of a “phase one” agreement, news of which had boosted markets.
The oil market outlook for next year may have upside potential, OPEC Secretary-General Mohammad Barkindo said last week, suggesting there is no need to cut output further.
The Organization of the Petroleum Exporting Countries and its allies led by Russia meet in December. The so-called OPEC+ alliance, seeking to boost oil prices, has since January cut output by 1.2 million barrels per day until March 2020.
In the US, energy companies last week reduced the number of oil rigs operating for a third week in a row.