Worldwide benchmark Brent oil traded at $57.28 per barrel at 0620 GMT for a daily loss of 0.5 percent, after ending Monday at $57.56 a barrel.
Oil prices rose slightly on Tuesday, supported by hopes that talks in Beijing between US and Chinese officials might defuse a trade dispute between the world's two biggest economies, while OPEC-led supply cuts also tightened markets.
West Texas Intermediate for February delivery traded up 2.5 percent to $49.71 at 12:21 p.m. local time.
Crude oil prices are up sharply Monday morning, extending gains to a sixth successive session, amid easing worries about global growth and energy demand after reports indicated a possible meeting of U.S. President Donald Trump and China's vice president Wang Qishan later this month.More news: Robert Mueller Accuses Manafort of Sharing Poll Data With Russian
OPEC, led by Saudi Arabia, alongside other producers led by Russian Federation, agreed past year to rein in supplies starting from January after oil tumbled from above $86 on worries about surging output.
Political risk consultancy Eurasia Group said in its 2019 outlook, "We remain concerned about the world's most important bilateral relationship".
"The U.S. political establishment believes engagement with Beijing is no longer working, and it's embracing an openly confrontational approach.(and) rising nationalist sentiment makes it unlikely that Beijing will ignore U.S. provocations", Eurasia Group said.
The bank stated, "We expect that the oil market will balance at a lower marginal cost in 2019 given: higher inventory levels to start the year, the persistent beat in 2018 shale production growth amidst little observed cost inﬂation, weaker than previously expected demand growth expectations (even at our above consensus forecasts) and increased low-cost production capacity".More news: Afghan Taliban, US to hold fourth round of peace talks in Qatar
Societe Generale cut its 2019 oil price forecast for Brent by $9 to $64 a barrel and reduced its forecast for United States light crude by $9 to $57 a barrel.
The America-China trade talks are showing signs of progress. The trigger point for an upside breakout for Brent is $58.71. WTI could plunge under $48.57.
The supply boost - largely undertaken by Saudi Arabia and Russian Federation - as well as the grant of waivers to countries to trade with Iran following implementation of sanctions in November led to a glut in the market and the eventual steep decline in prices, which fell to $54 for Brent by year-end.
Moody's also raised similar concerns about the effectiveness of Opec's output cuts and ability to maintain compliance this year, as the reduction comes after already record-high production by Saudi Arabia and Russian Federation.More news: Hudson-Odoi coy over Bayern speculation Read Chelsea • By Alex Turk
Despite the partial government shutdown, entering its 18th day, the Energy Information Administration has said it has appropriations for the fiscal year 2019 and will release its reports as usual, including the weekly petroleum supply data due Wednesday.