The sun sets behind an oil pump outside Saint-Fiacre, near Paris, France September 17, 2019.
U.S. Treasury Secretary Steven Mnuchin said late on Tuesday that tariffs on Chinese goods will remain in place until the completion of a second phase of a U.S. Chinese demand has been the main driver of global fuel consumption growth.
Concerns about increasing supply also pressured prices after a government report on Tuesday said that output from the US, now the world's largest producer, will increase in 2020 by more than previously forecast.
Brent, the global benchmark for crude, was down 65 cents, or 1 per cent, at $64.33 per barrel by 11:37 a.m. EST (15:37 GMT), continuing its slide from the middle of last week when the United States and Iran moved away from an outright war after Tehran fired missiles at U.S. airbases in Iraq.
Brent was 36 cents, or 0.6 per cent, higher at $64.36 a barrel by 0941 GMT, while United States crude was up by 22 cents, or 0.4 per cent, at $58.03 a barrel.
U.S. President Donald Trump is slated to sign the Phase 1 agreement with Chinese Vice Premier Liu He at the White House on Wednesday. That agreement is expected to include provisions for China to buy up to $50 billion more in US energy supplies.
USA crude production also rose to a record 13 million barrels per day, the agency said.
In crucial data, US oil inventory for the week-ended January 10 fell by 2.55 million, compared with analyst expectation of a drop of 474,000 barrels, according to the US Energy Information Administration data.
Key members of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, have started discussions on possibly delaying until June a decision on extending an existing output cut, Russia's TASS news agency said on Wednesday, citing an unnamed source.
Brent futures were up 66 cents, or 1%, at $64.86 a barrel by 12:45 p.m. EST (1745 GMT), while U.S. West Texas Intermediate (WTI) crude was up 39 cents, or 0.7%, at $58.47.
Although a larger-than-expected draw in commercial oil inventories is generally seen as a bullish development for oil, the fact that distillate stockpiles, which include diesel and heating oil, increased by 8.2 million barrels in the same period didn't allow the WTI to gain traction.