TOKYO: Oil prices rose on Wednesday, with US crude gaining 1 per cent after an industry report showed stockpiles in the United States, the world’s biggest oil user, fell more than expected, easing worries about economic growth due to the China-US trade war.
Brent crude futures climbed 42 cents, or 0.7 per cent, to 59.93 a barrel by 0220 GMT. West Texas Intermediate (WTI) crude futures gained 56 cents, or 1 per cent, to $55.49 a barrel.
US crude stockpiles fell sharply last week as imports dropped, plummeting by 11.1 million barrels, compared with expectations for a 2 million barrel draw, data from industry group the American Petroleum Institute (API), showed.
The US government’s weekly report is due to be released on Wednesday morning and if official numbers confirm the API data then it will be the biggest weekly decline in nine weeks.
“The mammoth crude inventory draw has, at least for the time being, put to rest those US recessionary doom and gloom fears that have been hanging over oil markets like a dark cloud,” said Stephen Innes, managing partner at Valour Markets.
Still, concerns about global growth amid the raging trade war between US and China, which are the two biggest crude oil consumers, are likely to cap gains. — Reuters
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