Oil prices have increased, led by US crude, easing concerns about economic growth because of the trade conflicts between the US and China, the two biggest crude oil consumers.
Brent crude futures rose 0.7% to $59.93 a barrel, while West Texas Intermediate (WTI) crude futures grew 1% to $55.49 per barrel, Reuters reported.
Data from industry group the American Petroleum Institute (API) revealed that crude stockpiles in the US declined more than expected last week as imports dropped by 11.1 million barrels, compared with expectations for a two million barrel draw.
If the official numbers from the US Government’s weekly report, which is due to released later today, confirm the API data then it will reportedly be the largest weekly drop in nine weeks.
Stephen Innes, managing partner at Valour Markets, was quoted by Reuters as saying: “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.”
It is expected that concerns on worldwide growth amid the intense trade war between the US and China will cap gains, the news agency reported.
Earlier this week, US President Donald Trump said that he believed China was sincere about wanting to reach an agreement, while Chinese Vice Premier Liu He said his country was seeking to resolve the dispute via calm negotiations.
However, China’s foreign ministry has said it had not heard of any recent telephone call with the US on trade, and added that it hopes Washington can stop its inappropriate moves and create conditions for negotiations.
Crude oil prices have decreased nearly 20% from 2019 highs reached in April 2019, partly due to concerns that the US-China trade war is showing its effect on the worldwide economy, which is expected to lessen demand for oil.