2019.06.2706:59:00UTC+00Oil Prices Slip Ahead Of G20 Summit

Oil prices fell more than 1 percent on Thursday as market participants are still sceptical about a U.S.-China trade deal being reached at the G20 summit in Osaka, Japan.

Benchmark Brent crude fell by 77 cents or 1.2 percent to $64.92 a barrel, while U.S. West Texas Intermediate crude futures were down 72 cents or 1.2 percent at $58.66.

U.S. President Donald Trump is meeting his Chinese counterpart Xi Jinping on Saturday and the outcome could be pivotal for the global economy and financial markets.

A breakthrough in the current stalemate is unlikely, though both sides may agree to continue talks over their escalating trade feud. It's now 18 months since Trump levied his first tariffs on Chinese imports.

Markets also await a meeting of OPEC and other producers on Monday to decide on an extension to output cuts.

OPEC producers including Russia agreed in December to reduce supply by 1.2 million barrels per day from Jan. 1, leading to tighter global supply. The agreement is due to expire on June 30.

With concerns over slowing global growth and renewed trade tensions fueling risk aversion, an extension of the production cut agreement by another six months appears a done deal.