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Oil Futures Pare Early Gains, Settle Slightly Lower

Crude oil futures failed to hold early gains and ended slightly weak on Monday.

Prices rose higher earlier in the day as traders shifted their attention to U.S.-China trade negotiations, due to resume on Thursday.

Chinese Vice-Premier Liu is scheduled to meet U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in Washington.

Data showing a drop in OPEC output in the month of September supported oil's uptick in morning trades.

West Texas Intermediate Crude oil futures for November ended down $0.06 at $52.75 a barrel, after having surged to $54.06 earlier in the day.

On Friday, WTI crude oil futures for November ended up $0.36, or about 0.7%, at $52.81 a barrel, snapping an eight-day losing streak.

On Friday, U.S. President Donald Trump said his administration had a "very good chance" of agreeing a trade deal.

Meanwhile, a Bloomberg report, citing people familiar with the discussions, said that Chinese officials are reluctant to agree to a broad trade deal pursued by Trump.

Specifically, Premier Liu He is said to be ruling out commitments to reform Chinese government subsidies or industrial reform.

Traders also reacted to reports about the protest in Iraq where over 100 protesters have been killed and more than 6,000 wounded as the government scrambles to contain the popular anger that has racked Baghdad and several southern cities since last Tuesday.

According to a survey from S&P Global Platts, OPEC crude output dropped by 1.48 million barrels a day to 28.45 million barrels a day in September. That was the biggest drop month-on-month in about 17 years.

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