Investing.com - Oil prices were down on Thursday in Asia, erasing some of the strong gains made in the previous session as investors awaited the upcoming G20 summit in Japan and a meeting of OPEC and other producers to decide on an extension to output cuts.
U.S. WTI crude futures were down 0.5% to $59.1 by 1:20 AM ET (05:20 GMT). Brent crude futures dropped 0.4% to $65.41.
Oil prices jumped more than 2% on Wednesday after government data showed that crude oil inventories fell by a larger than forecast 12.79 million barrels last week, nearly four times the forecast draw and the largest decline since 2016.
But energy traders remained cautious amid fears that a hoped-for breakthrough on trade at the G20 may not materialize, while uncertainty over continued output cuts also weighed.
U.S. President Donald Trump will meet with Chinese President Xi Jinping at the Group of 20 summit that starts on Friday in Osaka, Japan to seek a breakthrough in negotiations to end a trade war that has been hitting global economic growth.
Trump said on Wednesday that a deal was possible but also spoke of a Plan B that would involve reducing business ties with China.
Almost immediately after the G20 summit ends on Saturday, the Organization of the Petroleum Exporting Countries (OPEC) meets on Monday to discuss an extension of production cuts to support prices.
The day after that OPEC members meet with other producers including Russia in a grouping known as OPEC+, which agreed in December to reduce supply by 1.2 million barrels per day from Jan. 1. The agreement is due to expire on June 30.
--Reuters contributed to this report