Oil prices fell by 1 per cent on Thursday on swelling US supply, although the mood in global markets was increasingly confident amid hopes the United States and China may soon end trade disputes that have undermined global economic growth.
US West Texas Intermediate (WTI) crude oil futures were at $51.75 per barrel at 0113 GMT, down 61 cents, or 1.2 per cent, from their last settlement.
International Brent crude futures were down 1 per cent, or 63 cents, at $60.81 per barrel.
Both oil price benchmarks had jumped by around 5 per cent the previous day as financial markets around the world surged on the hopes that Washington and Beijing may soon be able to end their trade disputes, soothing fears of an all-out trade war between the two biggest economies and its possible impact on global growth.
“Amid easing trade tension and a weaker US dollar , crude oil prices rallied after Saudi Arabia reassured the market that its production cuts would remain in place,”ANZ bank said on Thursday.
Saudi Arabia’s energy minister said on Wednesday he was confident that supply cuts started in late 2018 by the Organization of the Petroleum Exporting Countries (OPEC) and some allies, including Russia, aimed at reining in oversupply would bring the oil market into balance.