2019.12.2009:45:00UTC+00Oil Prices Edge Lower In Cautious Trade

Oil prices were slightly lower on Friday in thin pre-Christmas trading.

Benchmark Brent crude edged down 0.2 percent to $66.42 per barrel, while West Texas Intermediate crude futures were down 0.25 percent at $61.03.

Though optimism on the trade front and the ongoing OPEC supply cut agreement supported sentiment, traders are resorting to profit booking ahead of the year-end holiday period.

It appears that the U.S.-China 'phase one' deal announced last week has taken some risk of escalation off the table for 2020.

A week after Beijing and Washington agreed a trade agreement, China announced a list of United States (US) chemicals that will be exempted from import tariffs.

U.S. Treasury Secretary Steven Mnuchin said on Thursday a trade deal with China was finished and is ready for signing after the holidays.

Mnuchin told CNBC television that increased Chinese purchases of U.S. agricultural, manufactured goods, energy and services would add about a half percentage point to U.S. economic growth during the next two years.