Oil prices ease to 3-week low as negative economic news offsets trade optimism

Oil prices eased to a three-week low on Friday on negative economic news from the United States and China and signs of growing supply despite optimism U.S. trade deals could boost global economic growth and oil demand in the future.

Brent crude futures fell 76 cents, or 1.1%, to $68.42 a barrel by 1:44 p.m. EDT (1744 GMT), while U.S. West Texas Intermediate (WTI) crude fell 91 cents, or 1.4%, to $65.12.

That put Brent on track for its lowest close since July 4 and WTI on track for its lowest close since June 30.

For the week, Brent was down about 1% and WTI down about 3%.

European Commission President Ursula von der Leyen will meet U.S. President Donald Trump on Sunday in Scotland after European Union officials and diplomats said they expected to reach a framework trade deal this weekend.

The euro zone economy has remained resilient to the pervasive uncertainty caused by a global trade war, a slew of data showed on Friday, even as European Central Bank policymakers appeared to temper market bets on no more rate cuts.

In the U.S., meanwhile, new orders for U.S.-manufactured capital goods unexpectedly fell in June while shipments of those products increased moderately, suggesting that business spending on equipment slowed considerably in the second quarter.

Trump said on Friday that he had a good meeting with Federal Reserve Chair Jerome Powell and got the impression that the head of the U.S. central bank might be ready to lower interest rates.

Central banks, like the Fed or ECB, use interest rates to keep inflation in check. Lower interest rates reduce consumer borrowing costs and can boost economic growth and demand for oil.

In China, the world's second biggest economy, fiscal revenue dipped 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.