Investing.com - Oil prices fell on Thursday in Asia as rising U.S. crude inventories outweighed positive Sino-U.S. trade development.
U.S. Crude Oil WTI Futures fell 0.3% to $56.12 by 1:05 AM ET (05:05 GMT). International Brent Oil Futures were down 0.1% to $60.62.
The fall in oil prices came as the American Petroleum Institute (API) showed U.S. crude stocks rose by 401,000 barrels in the week ended Aug 30 to 429.1 million, compared with analysts' expectations of a decrease of 2.5 million barrels.
Crude stocks at the Cushing, Oklahoma, delivery hub fell by 238,000 barrels, while refinery crude runs fell by 306,000 barrels per day, API said.
Oil prices gained earlier in the day prior to the release of the API weekly data, as China confirmed that it will hold talks with the U.S. in October to discuss trade-related issues.
Outperforming China data released earlier in the week also provided continuing support to risk assets.
Oil prices surged more than 3% on Wednesday after data showed China’s services sector expanded by the fastest pace in three months in August, driven by new orders. China is the world’s second-largest oil consumer.
Meanwhile, Hong Kong leader Carrie Lam’s decision to fully withdraw a controversial extradition bill also lifted sentiment across Chinese markets, although most believe that unrest in the city will continue as the other four demands raised by protestors, including the rights of the citizens to choose and vote for their own leaders, were not yet met.