Oil slips toward $60 on demand worries, despite trade hopes - Reuters

Oil slips toward $60 on demand worries, despite trade hopes - Reuters:

Oil slipped to around $60 a barrel on Friday as concern about a slowdown in the global economy and oil demand outweighed hints of progress in the U.S.-China trade dispute.

OPEC and the International Energy Agency (IEA) both issued reports this week pointing to an oil surplus next year, despite a pact by OPEC and its allies, a producer alliance known as OPEC+, to limit supplies. The deal runs until March.

“In order to avoid a price slide and a massive inventory build, OPEC+ would need to implement further voluntary production cuts,” said Eugen Weinberg, analyst at Commerzbank.

“The challenge facing OPEC+ is thus likely to become even bigger next year, maintaining the pressure on the oil price.”

Benchmark Brent crude LCOc1 was down 20 cents at $60.18 a barrel by 0955 GMT, while U.S. West Texas Intermediate CLc1 fell 27 cents to $54.82.