Oil prices weakened on Friday due to negative economic news from the United States and China and signs of rising supply, despite optimism that a U.S. trade deal could boost global economic growth and future oil demand.

Brent crude futures fell 32 cents, or 0.5%, to $68.86 a barrel at 11:02 a.m. EDT (15:02 GMT), while U.S. West Texas Intermediate (WTI) crude fell 47 cents, or 0.7%, to $65.56. This caused Brent prices to fall about 1% for the week and WTI to fall about 3%.

U.S. President Donald Trump said on Friday there was a 50-50 chance, or even less, that the U.S. would reach a trade deal with the European Union (EU), saying Brussels was eager to "make a deal." The eurozone economy remains resilient in the face of widespread uncertainty stemming from the global trade war, a raft of data showed on Friday, even as European Central Bank policymakers appeared to temper market speculation that further interest rate cuts would be avoided.

Meanwhile, in the US, new orders for US-made capital goods unexpectedly fell in June while shipments of such products rose moderately, suggesting that business spending on equipment slowed significantly in the second quarter. Trump also said on Friday that he had a good meeting with Federal Reserve Chairman Jerome Powell and that he was under the impression that the US central bank chief might be ready to cut interest rates.

Central banks, such as the Fed or the ECB, use interest rates to control inflation. Lower rates reduce consumer borrowing costs and can boost economic growth and oil demand.

In China, the world's second-largest economy, fiscal revenue fell 0.3% in the first six months from a year earlier, the Finance Ministry said on Friday, maintaining the rate of decline seen between January and May. (alg)

Source: Reuters