WTI crude oil continues its bearish run into the second day of the week over lack of positive updates surrounding the US-China trade talks. At the time of writing, WTI crude oil is trading at around $56.69 per barrel.

After encouraging comments on the negotiations from both nations, there was optimism in oil markets that the 16-month long trade war could soon be heading towards resolution. A partial trade deal and suggestions that tariffs on US and Chinese imports could be rolled back had boosted the sentiment in global financial markets and reassured traders that oil demand could pick up soon.

However, the mood in the markets soured at the end of last week when Trump stated that he was not interested in rolling back tariffs on Chinese goods. He also added that while trade talks were progressing well, any trade deal being signed will need to be in the best interests of the US. This gave rise to concerns that the “Phase 1” trade deal may still be some time away.

Crude oil prices are also trading under pressure over a rise in Saudi Arabia’s crude oil production to 10.3 million bpd in October. While this figure still stays within the limits agreed by OPEC+, it still points to supply remaining strong while demand slides lower.