Mubasher: Oil prices were afloat on Thursday, after losses in the preceding session, as markets were edgy amid worries over a potential delay to a partial trade deal between the US and China, coupled with a large buildup of US crude inventories, according to Reuters.

By 6:38 am GMT, US Nymex crude futures ticked down by 0.02% to $56.34 per barrel (pb), after recording 1.54% drop by the end of the prior session, while global benchmark Brent futures inched down by 0.06% to $61.70 pb, having closed nearly 2% lower.

US crude stockpiles jumped by 7.9 million barrels last week, as refiners scaled back their output and exports fell by around, while it came larger a forecast for an increase of 1.5 million barrels, the Energy Information Administration (EIA) said.

US crude exports dropped by around 1 million barrels last week to 2.4 million barrels per day (bpd).

This was associated to US sanctions against Chinese tanker firm COSCO and others over allegations of moving crude oil from Iran in late September, violating penalties against the oil-rich country, according to market strategist AxiTraders Stephen Innes.

“The sanctions are coming back to haunt oil bulls as a trifecta of negativity if you include the probable delay in signing the Phase one trade deal” between Washington and Beijing, Innes was quoted by Reuters as saying.

A meeting between US President Donald Trump and his Chinese counterpart Xi Jinping to sign a partial trade deal could postponed until December as negotiations proceed over terms and venue, a senior White House official told the news agency on Wednesday.

However, the “Phase One” deal to end a crippling trade conflict may not be reached, yet an agreement was more likely than not, the official said.