Crude oil prices drifted lower on Monday due to excess supply in the market and on uncertainty over a potential trade deal between the U.S. and China.
According to a report released by Energy Information Administration today, U.S. shale production is likely to climb by 49,000 barrels a day in December to 9.133 million barrels a day.
The report said oil output from the Permian Basin, that covers parts of western Texas and southeastern New Mexico, is expected to see an increase of 57,000 barrels a day in December, compared to a month earlier.
Meanwhile, on the trade front, uncertainty about a deal resurfaced after a tweet from CNBC's Beijing Bureau Chief Eunice Yoon suggested Chinese officials have grown pessimistic about the chances for a trade deal due to U.S. President Donald Trump's reluctance to roll back tariffs.
"Mood in Beijing about #trade deal is pessimistic, government source tells me. #China troubled after Trump said no tariff rollback. (China thought both had agreed in principle.)" Yoon tweeted.
Earlier, optimism about a trade deal increased after reports said Washington and Beijing had a high-level phone call on Saturday, discussing core issues, and that the discussions were constructive.
West Texas Intermediate crude oil futures for December ended down $0.67, or about 1.2%, at $57.05 a barrel.
Brent crude futures ended down $0.95, or about 1.5%, at $62.35 a barrel.
On Friday, WTI crude oil futures for December ended up $0.95, or about 1.7%, at $57.72 a barrel.
Optimism about a trade deal between the world's two largest economies and hopes the OPEC might decide to go in for deeper supply cuts supported crude oil prices on Friday.
OPEC and its allies are set to take a call on output cuts beyond March 2020, when they meet on December 9 in Vienna.
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