Oil futures regained ground midweek, reversing losses from earlier in the week, although levels were still below the same time last week as hopes of a resolution in the US-China trade dispute dimmed.

Brent crude futures were roughly flat on the day at around $62 per barrel midweek, but down more than half a dollar from the same time last week after comments from US President Donald Trump offered few details about the direction of US trade talks in Beijing.

Hopes that he would announce significant progress had underpinned oil and other markets late last week

US West Texas Intermediate crude was trading midweek at $56 per barrel, versus $57.16 per barrel at the same time last week.

While the 16-month trade war between the world’s two biggest economies has raised concerns about economic growth Trump did claim talks with China were “moving along nicely”.

However, comments about the US only making a deal with Beijing if it was right for America, kept gains to a minimum.

Prices were, however, given some support from comments by Opec Secretary-General Mohammad Barkindo, who claimed this week to be more optimistic about the outlook for oil markets in 2020.

Barkindo appeared to downplay any need to cut output deeply, according to Reuters reports, despite the support these cuts have previously offered oil prices.

Opec, Russia and other producers agreed to cut oil production by 1.2 million barrels per day until March 2020. Producers are due to meet in early December to review their output policy.

Meanwhile, shale output from the US is set to stay higher for longer than previously projected, according to the International Energy Agency (IEA).

“The US still accounts for 85% of the increase in global oil production to 2030... By 2025, total US shale output (oil and gas) overtakes total oil and gas production from Russia,” according to the IEA’s flagship annual energy outlook.

“The higher US output pushes down the share of Opec members and Russia in total oil production, which drops to 47% in 2030, from 55% in the mid-2000s,” it said.

“The effects have been striking, with US shale now acting as a strong counterweight to efforts to manage oil markets,” Fatih Birol, the IEA’s executive director said, while noting that the world is still set to rely heavily on oil supplies from the Middle East for years to come.

The US Energy Information Administration (EIA) was due to release figures on crude inventories after Upstream went to press this week, with the data delayed by a public holiday.

Inventories have been on up upward trend. Earlier this month, US commercial crude inventories--excluding those in the strategic petroleum reserve--reached 446.8 million barrels, which is about 3% above the five-year average for this time of year, the EIA said.

Finance

Oil rebounds but is still down on previous week