Mubasher: Oil prices retreated from their two-month peaks on Friday as doubts persisted as to whether the US and China will manage to hammer out an interim trade deal, according to Reuters.

This muted the push from the possibility of extending supply cuts by the world’s key producers.

By 7:55 am GMT, US Nymex crude futures dropped by 0.39% to $58.35 per barrel (pb), while global benchmark Brent futures fell by 0.34% to $63.75 pb.

China invited senior US trade officials for a fresh round of in-person talks in Beijing in an attempt to clinch at least a limited deal, the Wall Street Journal (WSJ) reported on Thursday, citing unnamed sources.

“The key factor for the demand outlook for oil is the [US-Sino] trade negotiation currently going on,” Sydney-based CMC Markets and Stockbroking chief strategist Michael McCarthy was quoted by Reuters.

Prices hit their highest level since late September, following a report by the news agency that the Organization of the Petroleum Exporting Countries (OPEC) and Russia could probably extend implemented output cuts for another three months, when they meet on 5 December.

On the data front, the US, the UK and the Eurozone are due to release manufacturing data, McCarthy said, adding that this could impact markets.