WASHINGTON (dpa-AFX) - Crude oil futures rose to near 4-1/2-month high in early trades on Thursday, but retreated and settled in negative territory as weak economic outlook triggered concerns about energy demand.
An unexpected fall in U.S. crude inventories in the week ended March 15, OPEC-led output cuts and the U.S. sanctions on Iran and Venezuela lifted oil prices early on in the session.
But prices retreated as global economic slowdown raised concerns about energy demand and uncertainty about U.S.-China trade talks continued to weigh.
Crude oil futures for May ended down $0.25, or 0.4%, at $59.98 a barrel.
After holding interest rates unchanged on Wednesday, the Federal Reserve cut its economic growth forecast for 2019 and also revised down expectations for headline inflation, citing slowdowns in household spending and business fixed investment.
Meanwhile, trade worries continue to linger after U.S. President Donald Trump warned on Wednesday that he would likely keep tariffs on Chinese goods for a 'substantial period' until he is sure Beijing is complying with any trade agreement.
According to reports, the U.S. and China are set to resume talks next week following conflicting reports over the progress of negotiations in recent days.
Data released by the Energy Information Administration on Wednesday showed U.S. crude oil stockpiles to have dropped by 9.6 million barrels in the week ended March 15, the the most since July, boosted by strong export and refining demand. That compared with analysts' expectations for an increase of 309,000 barrels.
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