International benchmark Brent futures dropped 23 cents, or 0.3 per cent, to $69.17 a barrel. On Thursday, they closed 9 cents higher after touching a session high of $70.03, the highest since November 12.
The US West Texas Intermediate crude (WTI), was down 2 cents at $62.08. The contract fell 36 cents in the previous session, having hit $62.99 on Wednesday, its highest since November.
US President Donald Trump said on Thursday a trade deal with China was getting very close and could be reached in about four weeks, but he said sticking points included tariffs and intellectual property theft.
“After much talk there is still nothing to show for it, which is once again putting downward pressure on energy demand going forward,” Esparza said.
Brent has gained nearly 30 per cent this year, while WTI has risen nearly 40 per cent, underpinned by US sanctions on Iranian and Venezuelan crude, OPEC production cuts and rising global demand.
But bearish economic indicators this week, including lower German factory orders, may be putting a cap on those gains.
German industrial orders fell in February by the sharpest rate in more than two years, according to data released Thursday.
Orders were hit by a slump in foreign demand, compounding worries that Europe’s largest economy had a weak start to the year.