Oil slips as lack of US-China trade talk progress frays investor nerves

US oil prices fell for the second straight day on Tuesday amid market jitters over limited progress between China and the United States on rolling back trade tariffs, exacerbated by a rise in US inventories.

West Texas Intermediate (WTI) crude fell 10 cents or 0.18% to $56.95 a barrel by 0148 GMT, falling again from an eight-week high hit last Friday when hopes for the trade deal rose.

Brent crude futures were down 12 cents, or 0.19%, at $62.32.

A Chinese government source was quoted by broadcaster CNBC on Monday as saying there was gloom in Beijing about prospects for a trade deal, with Chinese officials troubled by US President Donald Trump's comment that there was no agreement on phasing out tariffs.

The lingering trade battle that has seen the world's two biggest economies impose tit-for-tat tariffs on each other has hit global growth prospects and clouded the outlook for future oil demand.

Meanwhile a preliminary Reuters poll on Monday showing US crude oil stockpile were seen rising for the fourth straight week also squeezed prices.