Oil prices dropped over $1 a barrel on Wednesday amid doubts over US-China trade talks and easing concerns about global supply disruptions.Brent crude settled at $61.12, down $1.03, while US West Texas Intermediate fell $1.02 to $58.07, Reuters reported.
Investor sentiment fell as US-China trade talks, scheduled for Switzerland, were considered as unlikely to achieve results. At the same time, hints of progress in US-Iran nuclear talks have allayed concerns about restricted supplies from the OPEC supplier.
Gasoline stocks in the United States unexpectedly increased, increasing demand concerns as the summer driving season approaches. Although oil stockpiles declined by 2m barrels, the increase in gasoline negated optimistic optimism, according to Reuters.
Geopolitical tensions in the Middle East and signals of reduced investment from US producers provided some relief, but market volatility is set to linger.
