* Stocks gain on stimulus cheer, trade optimism
* OPEC sees bearish oil market for rest of 2019
* Coming up: API data on U.S. crude stockpiles at 0830 GMT
By Jessica Jaganathan
SINGAPORE, Aug 20 (Reuters) - Crude oil prices slipped on Tuesday,
but losses were limited as equity markets rallied and as traders hoped
Sino-U.S. trade tensions would ease.
The United States said it would extend a reprieve that permits
China's Huawei Technologies to buy components from U.S. companies,
in a sign of a slight softening of the trade war between both
Brent crude had slipped 3 cents, or 0.05%, to $59.71 a barrel
by 0147 GMT, after rising 1.88% on Monday.
U.S. crude was down 15 cents, or 0.3%, at $56.06 a barrel,
after gaining 2.44% in the previous session.
The extension sets a very "comforting tone" ahead of
next month's U.S.-China trade talks, Stephen Innes, managing partner,
VM Markets, said in a note.
"The U.S.-China trade spat has been at the centre of the oil
market demise, which has sent the global economy to the brink of
recession and negatively impacted oil demand forecasts," he said.
A rally in equity markets around the world from growing
expectations that global economies would take action to counteract
slowing growth also supported oil prices, which often follow stocks.
China's central bank unveiled interest rate reforms which are
expected to lower corporate borrowing costs, while Germany's
right-left coalition government said it would be prepared to ditch its
balanced budget rule and take on new debt to counter a possible
Meanwhile, a Reuters poll of seven analysts showed that crude oil
inventories in the United States fell by 1.9 million barrels in the
week to Aug. 16.
The poll was conducted ahead of reports from the American
Petroleum Institute (API), an industry group, and the Energy
Information Administration (EIA), an agency of the U.S. Department of Energy.
The API is scheduled to release its data on Tuesday.
Still, prices were weighed down by a report from the Organization
of the Petroleum Exporting Countries (OPEC) that stoked concerns about
growth in oil demand.
OPEC cut its forecast for global oil demand growth in 2019 by
40,000 barrels per day (bpd) to 1.10 million bpd and indicated the
market would be in slight surplus in 2020.
Traders were also watching for signs of tension in the Middle East
after the U.S. called the release of an Iranian tanker at the centre
of an angry confrontation between Iran and Washington unfortunate and
warned Greece and Mediterranean ports against helping the vessel.
(Reporting by Jessica Jaganathan; Editing by Joseph Radford)
((Jessica.Jaganathan@thomsonreuters.com; +65 6870 3822; Reuters
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