2019.11.0110:13:00UTC+00Oil Set For Big Weekly Loss On Trade Woes

Oil prices edged higher on Friday as upbeat manufacturing data from China helped offset investor concerns about rising supply from the United States and expectations that slowing economic growth will dent demand.

Benchmark Brent crude edged up 0.1 percent to $59.69 a barrel, but remain on track for a weekly loss of about 4 percent on concerns over uncertain future demand. U.S. crude futures were up 0.3 percent at $54.32 a barrel after three days of losses.

The upside in oil prices came after upbeat manufacturing data from China helped offset investor concerns over prospects of a U.S.-China trade pact.

A private survey showed factory activity in China expanded at its quickest pace since February 2017.

The Caixin/Markit manufacturing PMI rose to 51.7 in October from 51.4 for September, as production and new orders both expanded at a faster pace.

The data contrasted with the official gauge showing a contraction for the sixth consecutive month.

Elsewhere, Japanese factory activity sank to more than a three-year low in October in a fresh warning sign for the world's third-largest economy.

Optimism over a concrete U.S.-China trade deal faded after a Bloomberg report suggested that Chinese officials are unwilling to budge on the thorniest issues and have cast doubts about reaching a comprehensive long-term trade agreement.

Investors appeared somewhat soothed by U.S. President Trump's comments that the U.S. and China are working on a new site to sign phase one of the trade deal.