Reuters: Oil falls on caution ahead of economic data, offsets trade deal optimism

09:00, 04 November 2019
Economy
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REUTERS

Prices jumped about $2 a barrel on Friday after the world's top two economies said they had made progress on trade talks while U.S. officials said the deal could be signed this month, Reuters said.

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Brent crude futures for January LCOc1 fell 31 cents to $61.38 a barrel by 0406 GMT, while December U.S. crude futures CLc1 was at $55.91 a barrel, down 29 cents.

The European Union and the United States are set to announce manufacturing data on Monday with more U.S. and Chinese data to come later in the week.

Still, a fall in the U.S. rig count for a second week in a row and an upbeat U.S. jobs report supported oil prices last week. Independent producers cut spending after record production weighed on the outlook for energy prices.

Also underpinning U.S. crude prices was a shutdown of the Keystone pipeline that sends Canadian heavy crude to the United States. Owner TC Energy Corp (TRP.TO) said on Friday work was underway to plug the pipeline in North Dakota.

Production cuts by the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers - a group known as OPEC+ - since January to reduce oil output by 1.2 million barrels per day are also propping up prices.

Still, Russia again missed its output cut target in October, energy ministry data showed on Saturday.

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