Oil slips towards $60 on rise in US inventories, but trade hopes support

Oil slipped towards $60 a barrel on Thursday after a report showed US crude inventories rose unexpectedly, although hopes of progress in resolving the US-China trade row lent support.

The American Petroleum Institute (API), an industry group, on Wednesday said US crude stockpiles rose by 400,000 barrels last week, while analysts had expected a fall. The government’s official supply report is due out later on Thursday.

Benchmark Brent crude was down 25 cents at $60.45 a barrel by 0821 GMT, while US West Texas Intermediate (WTI) crude fell 39 cents to $55.87.

“Oil prices remain range-bound despite yesterday’s rally,” said OANDA analyst Craig Erlam. “API reported a modest increase in inventories on Wednesday, which failed to do much for oil prices.”