Oil falls off four-week highs on profit-taking

Oil prices fell in European trade on Thursday for the first session in eight off four-week highs on profit-taking, amid caution in the market as US-China trade talks wrapped up without immediate results. 

As of 09:10 GMT, US crude fell $51.60 a barrel, while Brent declined to $60.60 a barrel. 

US crude rose 4.8% yesterday, the seventh profit in a row, and the longest such streak since May 2018, marking four-week highs at $52.56. 

Brent rose 4.75%, the seventh profit in a row, marking December 13 highs at $61.67. 

Oil lost ground as caution prevails after no results were gleaned from the US-China trade talks in Beijing to end the dispute between the world's two largest economies. 

The Energy Information Administration reported a drop of 1.7 million barrels in the week ending January 4, while analysts expected a 2.6 million drop. 

Total stocks are down to 439.8 million barrels, the lowest since the week ending November 2 in a positive sign for demand in the world's largest oil consumer. 

US output steadied last week yet again at 11.7 million bpd, already a record high. 

Morgan Stanley cut estimates for oil prices in 2019 by 10% due to weak global growth and higher US supplies. 

The investment bank expects US crude to average $54 a barrel this year, compared to previous forecasts at $60 a barrel, while cutting estimates for Brent to $61 from $69. 

Morgan Stanley's analysts believe OPEC will have to continue cutting output to 2020 if true balance is to be achieved in the market.