U.S. President Donald Trump said on Wednesday that the two countries were close to finalising a trade deal, but he fell short of providing a date or venue for the signing ceremony, disappointing investors.
A forecast by the International Energy Agency for slower global oil demand growth post-2025 also weighed on the market.
Even as U.S. production growth slows from the breakneck pace of recent years, the world’s top oil producer will still account for 85% of the increase in global oil output to 2030, and for 30% of the increase in gas, the agency said.
“The effects have been striking, with U.S. shale now acting as a strong counterweight to efforts to manage oil markets,” IEA’s Executive Director Fatih Birol said.
ANZ analysts said the prospects for U.S. crude exports had turned bleak after shipping rates jumped last month, causing inventories to stay above both last year’s level and the five-year average.
Separately, the 590,000 barrel-per-day Keystone oil pipeline that transports Canadian heavy crude to the United States has restarted operations following an oil spill two weeks ago, a U.S. regulator said on Tuesday.
“We believe the production curbs could be extended beyond Q1 2020, although deeper cuts are unlikely,” ANZ analysts said.