Afshin Sazegar | Oil prices fell in Asia on Monday as traders are waiting for more clarity about the partial trade agreement that the US and China agreed on at the end of last week.
US crude oil futures were down 0.4% to $ 59.81 at 05:30 CET, while the international benchmark Brent fell 0.3% to $ 65.03.
Oil prices had jumped up on Friday and reached a three-month high after US President Donald Trump announced a limited trade agreement between the United States and China.
Under the terms of the agreement, the United States would not launch a new round of tariffs that was originally due to come on Sunday. In return, Beijing agreed that it would buy significantly more agricultural products in the United States, even if it did not provide precise details about their amount.
However, the U.S. Trade Representative's office said it will maintain the existing 25% tariffs on $ 250 billion in other imports from China and a 7.5 percent special tax on products of $ 120 billion.
While there is "in principle" agreement on the deal, the lack of official signing and deal details limited the gain in risk values.
While Trump announced on Twitter that the "Phase 2" trade talks would begin immediately, Beijing made it clear that the transition to the next phase of the trade negotiations would depend on the implementation of the first phase.
Data from China, which showed that industrial production and retail sales grew faster than expected in November, did not give the direction but did somewhat support the oil price and limit its decline.