Oil prices turned lower on Monday, despite progress in trade talks between the United States and China, as investors assessed the supply outlook.
Brent crude futures for December delivery fell 0.95%, or 62 cents, to $65.33 a barrel at 1:06 p.m. Mecca time.
Nymex crude futures for December delivery fell 1.1%, or 68 cents, to $60.83 a barrel. Both contracts gained about 7% last week.
U.S. Treasury Secretary Scott Besant said Sunday that U.S. and Chinese officials had reached a substantive framework for a trade agreement that would avoid 100% tariffs on Chinese products.
However, concerns about oversupply persist, with Fatih Birol, executive director of the International Energy Agency, saying that strong production growth in the Americas, coupled with weak oil demand, means additional pressure on prices.
"The trade agreement between China and the United States may give a slight boost to oil prices, but overall I expect relatively moderate prices," he added in an interview with Bloomberg.
