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Oil Prices Fall After Recent Rally

Oil prices fell on Thursday after recent gains as U.S.-China trade talks in Beijing ended without significant breakthroughs and a report showed that U.S. crude oil inventories declined less than expected last week.

Global benchmark Brent crude dropped 0.54 percent to $61.11 per barrel, while U.S. West Texas Intermediate (WTI) crude oil futures were down 0.59 percent at $52.05 per barrel.

Both benchmarks jumped around 5 percent on Wednesday on hopes that the U.S. and China will reach a long-term trade agreement before a March 1st deadline.

China's ministry of commerce said that the negotiations were "extensive, deep and meticulous" without offering specifics.

The U.S. Trade Representative's offices said in a statement that the two sides discussed "ways to achieve fairness, reciprocity and balance in trade relations".

Meanwhile, U.S. bank Morgan Stanley lowered its oil price forecast for 2019, citing weak global economic growth expectations and rising oil supply from the United States.

The Energy Information Administration (EIA) report showed on Wednesday that U.S. crude oil stockpiles fell by 1.7 million barrels in the week to Jan. 4, compared with analysts' expectations for a decrease of 2.8 million barrel. At the same time, gasoline and distillate inventories rose more than expected.

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