Oil prices are falling due to signs of a significant increase in US inventories
Economy News _ Baghdad
NEW YORK (Reuters) - Oil prices fell 1 percent on Thursday after sector data showed a larger-than-expected rise in US crude inventories, although losses were curbed by comments by US Treasury Secretary Stephen Mnuchin on a US-China trade deal.
Brent crude futures were down 57 cents, or 1 percent, at $ 58.85 a barrel by 0629 GMT.
US West Texas Intermediate crude futures fell 56 cents, or 1 percent, to $ 52.80 a barrel.
US crude oil inventories rose 10.5 million barrels to 432.5 million barrels in the week ending October 11, according to the weekly report of the American Petroleum Institute, published ahead of official inventory data due on Thursday.
Analysts estimate US oil inventories rose by 2.8 million barrels last week.
This comes amid concerns about the global economy and thus the demand for oil, while data from the United States revealed that retail sales fell for the first time in seven months in September. This follows earlier data that revealed modest job growth and service sector activities.
But hopes of a possible trade deal between the United States and China have helped reduce the drop in oil prices after Mnuchin said US and Chinese trade negotiators were working on the text of the first phase of a trade deal for the two heads of state to sign next month.