Nov 13 (LTIT) –Crude oil futures fell during mid-morning trade in Asia Wednesday as skepticism remained over the possibility of a trade deal going through between the US and China, while an expected increase reported in last week's US crude inventory also weighed on prices.

At 10:20 am Singapore time (0220 GMT), ICE January Brent crude futures were down 21 cents/b (0.34%) from Tuesday's settle at $61.85/b, while the NYMEX December light sweet crude contract fell 18 cents/b (0.32%) to $56.62/b.

US President Donald Trump on Tuesday, speaking at the Economic Club of New York said that the US and China were close to striking a trade deal, but warned that tariffs on Chinese goods would be raised if no trade agreement was reached between the two economies.

"Crude oil reversed earlier gains as US-China trade tension re-emerged, " ANZ analysts said in a note Wednesday.

President Trump's latest speech "had once again served as a reminder of the challenge that the two sides face in order to achieve the highly anticipated phase one deal," said Pan Jingyi, IG market strategist.

"Asian markets may be cautious today following Trump's threat of a substantial increase in tariffs if a deal is not reached," OCBC Bank analysts said in a note.

Meanwhile, prices came under pressure from a bearish report on last week's US crude inventory report, with analysts surveyed Tuesday by S&P Global Platts expecting US crude inventory for the week ended November 8 to have increased by 1 million barrels.

Market participants would be watching out for preliminary data on last week's US crude inventory report due for release from the American Petroleum Institute later Wednesday, and the more definitive numbers from the US Energy Information Administration later Friday.

Elsewhere, OPEC and its allies are leaning towards extending their 1.2 million b/d supply cut agreement through the end of 2020, according to officials in the producer coalition attending an industry conference in Abu Dhabi.

"The market is also keeping a close eye on comments from OPEC as members prepare to discuss the production cut agreement in Vienna on December 5-6," ANZ analysts said.

Ministers are scheduled to gather December 5-6 in Vienna to decide on the pact's future.

The coalition could punt the decision until closer to the deal's March expiry, but most likely will agree to extend the cuts at the meeting, one Gulf delegate told Platts on condition of anonymity.

As of 0220 GMT, the US Dollar Index was down 0.03% at 98.185.