Crude oil prices retreated after hitting a record high, as concerns surrounding the continued rise in oil supplies overshadowed optimism regarding potential trade agreement between the United States and China.

As of 13:10 GMT, Crude oil WTI futures erased all its earlier gains to trade lower at $57.35 after touching a seven-week high of $58.07. Brent crude futures also fell from a top of $63.56 to hover lower around $62.84.

The White House economic adviser said last Friday that Washington and Beijing were approaching a trade deal and that the situation between them was very good, which led to a rise in oil futures by about 2% on Friday.

The United States and China were able to have positive talks about the partial trade deal last weekend.

China's vice president Liu He held telephone talks on the first phase of the trade deal with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert lighthizer on Saturday morning, Xinhua reported Sunday.

During the talks between the two sides, they held constructive discussions on each other's fundamental concerns in the first phase of the deal, the agency said.

However, the agency gave no further details about the high-level phone call between the two sides.

Investors are still waiting to determine when and where the first phase of the trade deal, which was reached at the beginning of last month, will be signed by the presidents of the two countries.

On the supply side, OPEC predicted last week that demand for its oil would decline in 2020, supporting the view held by market traders that OPEC and other producers, including Russia, under the so-called OPEC+, will maintain production restrictions to address supply surplus.

It is worth mentioning that OPEC and its allies are expected to discuss production policy at a December 5-6 meeting in Vienna.

The dollar index, which tracks the green currency’s movements versus a basket of major currencies, slipped for a third straight session to hit a low at 97.72, the lowest since November 7.