(Bloomberg) -- Oil’s rally stuttered after China is said to be pushing back against American demands in trade negotiations, stoking concerns over growth that underpins energy demand.

Futures were down 0.3 percent in New York after closing 0.1 percent lower Tuesday. Fresh concerns over the ongoing trade talks between the U.S. and China cast a shadow over the outlook for the global economy and demand for crude. Still, the downside was cushioned by an American Petroleum Institute report that was said to show U.S. crude stockpiles declined 2.13 million barrels last week ahead of government data Wednesday.

Crude has surged 30 percent this year as Saudi Arabia led the OPEC+ coalition to cap production and ease a global glut. American sanctions also squeezed supplies from OPEC producers Venezuela and Iran. Meanwhile, a measure of oil volatility increased 10 percent this week after Russia pressured the Saudi-led group to delay extending output curbs at a time when hopes dimmed over a trade deal between the world’s two biggest economies.

“Oil’s struggling to break above $60 on many uncertainties, especially surrounding the result of the U.S.-China trade negotiations,” Kim Kwangrae, a commodities analyst at Samsung Futures Inc., said by phone from Seoul. “While crude’s rally has been fueled by Venezuela and OPEC’s commitment to curb output, the outcome of trade talks will determine the near-term direction.”

West Texas Intermediate for April delivery, which expires on Wednesday, traded 20 cents lower at $58.83 a barrel on the New York Mercantile Exchange. The contract retreated 6 cents to $59.03 on Tuesday, after reaching the highest level since Nov. 12 on Monday. The more-active May contract dropped 20 cents to $59.09 at 10:38 a.m. in Singapore.

Brent for May settlement lost 10 cents to $67.51 a barrel on the London-based ICE Futures Europe exchange. The contract added 7 cents to $67.61 on Tuesday. The global benchmark crude traded at an $8.40 premium to WTI for the same month.

--With assistance from James Thornhill.

To contact the reporter on this story: Sharon Cho in Singapore at ccho28@bloomberg.net

To contact the editors responsible for this story: Pratish Narayanan at pnarayanan9@bloomberg.net, Heesu Lee, Serene Cheong

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