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Oil prices tumble on trade progress worries

Oil prices tumble on trade progress worries

Oil prices fell nearly 1 percent in Monday trading, as concerns about progress in trade talks between the world's two largest economies were being made.

As of 09:23 GMT, Brent crude futures slumped 1.33 percent at $61.66 a barrel after hitting a high of $62.09. Crude oil WTI futures was down by 1.40 percent at $56.45 a barrel.

Last week, optimism about a trade deal pushed Brent to record gains of 1.3 percent, where the price hit its highest level at $63.30.

While Washington and Beijing confirmed progress in trade negotiations, currently there are no new details on when or where the partial trade deal will be signed.

There is also a conflict of views on tariffs between the two sides, as while China indicated that the fees were agreed to be dropped, President Donald Trump denied the issue by the end of last week.

U.S president Donald Trump said on Saturday that trade talks with China are going "very well," but the United States will only conclude an agreement with Beijing if it is appropriate for America.

The 16-month trade war between the world's two largest economies slowed global growth and prompted analysts to lower expectations for global crude demand, raising fears of a glut in 2020.

On the other hand, data released over the weekend showed that China's producer prices fell at the fastest pace in more than three years in the year ended October, as the manufacturing sector weakened on the back of the trade dispute.

This week, investors are waiting for the release of the monthly report of the organization of petroleum exporting countries (OPEC), which will show the production of each member of the cartel.

Also, eyes will focus on the weekly EIA report that will provide an update about inventories, following the massive build of 7.9 million barrels in the week ended November 1.

The dollar index, which measures the currency's performance against six major currencies, fell to 98.11 after five consecutive sessions of gains.

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