Oil Falls On Trade Worries, Rising Stockpiles

Oil prices fell on Friday after U.S. crude oil stockpiles rose sharply last week and doubts resurfaced about the prospects for a formal U.S.-China trade deal.

Benchmark Brent crude dropped 1.3 percent to $61.48 a barrel, after rising 0.9 percent in the previous session.

U.S. West Texas Intermediate (WTI) crude futures were down 1.5 percent at $56.28 a barre, after climbing 1.4 percent on Thursday.

U.S. crude oil stockpiles rose sharply last week as refineries cut output and exports dropped, while refined products extended a multi-week drawdown, the Energy Information Administration said on Wednesday.

Crude oil stockpiles increased by 7.9 million barrels in the week ended November 1, more than five times the expected increase.

Fresh worries over U.S.-China trade talks unnerved markets, offsetting better-than-expected trade data from China showing that exports and imports contracted less than expected in October.

China-U.S. trade-deal optimism waned a little bit after reports suggested that a plan to roll back tariffs on each other's goods in phases has met opposition from some advisers to U.S. President Donald Trump.

Chinese exports fell 0.9 percent year-on-year in dollar terms, declining for the third straight month. Economists had expected a 3.9 percent fall following September's 3.2 percent contraction.

Imports declined 6.4 percent from a year earlier, slower than the forecast of 7.8 percent fall. This was the sixth consecutive decrease reflecting subdued demand.

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