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Oil Dips After Inventory Build

Oil prices fell on Wednesday after rising for three straight sessions on optimism about progress in U.S.-China trade negotiations. Caution set in after a report showed a larger-than-expected build-up in U.S. crude stocks.

Benchmark Brent crude dropped 0.7 percent to $62.52 a barrel, after settling up 1.7 percent on Tuesday.

U.S. West Texas Intermediate (WTI) crude futures were down 0.6 percent at $56.88 per barrel, after having risen 1.2 percent in the previous session.

The American Petroleum Institute reported late Tuesday that U.S. crude inventories rose by 4.3 million barrels in the week ended Nov. 1. That was nearly triple analysts' forecast for an increase of 1.5 million barrels.

Official data from the Energy Information Administration (EIA) is due later in the session.

Meanwhile, investors remain hopeful for a resolution to the current U.S.-China trade war, with U.S. President Donald Trump and Chinese President Xi Jinping widely expected to sign phase one of the agreement sometime this month.

The two sides are working to narrow their differences enough to sign a "phase one" trade deal that could allow the U.S. to scrap tariffs on about $156 billion worth of Chinese imports currently set to take effect on December 15.

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