16/01/2020
Reuters
Oil prices fell slightly on Wednesday, pressured by data showing increases in stocks of refined products in the United States, but recovered some losses after the signing of the Phase 1 trade agreement between Washington and Beijing.
Brent crude futures ended the trading session low, 49 cents, or 0.8 percent, to settle at $ 64 a barrel, while US West Texas Intermediate crude contracts fell 42 cents, or 0.7 percent, to close at $ 57.81.
Traders said that oil prices had reduced their initial losses due to "the optimistic atmosphere surrounding the US-China trade agreement and expectations that oil demand will remain strong."
Earlier in the session, crude prices fell to their lowest levels in more than a month after the US government announced a significant increase in gasoline and distillate inventories and a record high oil production in the United States.
Data from the US Energy Information Administration showed that gasoline stocks in the world's largest economy rose last week to their highest level since February 2019, while distillate inventories jumped to the highest level since September 2017.
