Oil prices pulled back from their highest levels in nearly two months on Friday amid continued uncertainty over whether the United States and China will be able to reach a partial trade deal that would lift some pressure on the global economy.
That was more than enough to offset news of a likely extension of production cuts by major producers that drove prices higher in the previous session, Reuters said.
By 0544 GMT, Brent crude futures LCOc1 fell 42 cents, or 0.7%, to $63.55 a barrel. West Texas Intermediate crude CLc1 was at $58.14 a barrel, down 44 cents. or 0.8%.
China has invited top U.S. trade negotiators for a new round of face-to-face talks in Beijing amid continued efforts to strike at least a limited deal, the Wall Street Journal reported on Thursday citing unidentified sources.
Prices had touched their highest since late September on Thursday after Reuters reported that the Organization of the Petroleum Exporting Countries (OPEC) and Russia are likely to extend existing production cuts by another three months to mid-2020 when they meet on December 5.
Oil was also buoyed by comments from China's commerce ministry on Thursday that it will strive to reach an initial agreement with the United States to end the pair's long-running trade war, allaying fears that talks might be unraveling. However, the completion of a phase one deal could slide into next year.
News that last week saw the biggest drawdown in three months for U.S. crude stock stockpiles at Cushing, Oklahoma also underpinned prices earlier this week. Cushing is the delivery point for WTI futures.
Elsewhere, traders are also keeping a keen eye on the impact on oil production at OPEC countries Iran and Iraq amid ongoing protests.