Oil prices have increased after China and the US moved to ease trade tensions and due to a fall in the US crude stockpiles.
Brent crude futures LCOc1 increased 45 cents at $61.26 a barrel, while US West Texas Intermediate (WTI) futures CLc1 rose 50 cents at $56.25 a barrel, Reuters reported.
Oil prices gained after China excluded some US anti-cancer drugs and other goods from taxes, while President Donald Trump announced a delay to scheduled tariff hikes on goods manufactured in China.
The tariff concessions preceded a proposed meeting set to take place in coming days and aims to ease the US-China trade war.
OANDA senior market analyst Jeffrey Halley was quoted by Reuters as saying: “The postponement of the next round of China tariffs by President Trump…has the global growth story back in full swing.”
Prior to European Central Bank (ECB) rate review, Halley said that further rallies in Asia look limited today.
The upswing of oil prices came following a decline in both the principal global benchmarks sharply in the previous day after Trump weighed easing sanctions on Iran. The move is expected to boost crude supply across the globe.
Data released by the US Energy Information Administration (EIA) highlighted a fall in the US crude stock last week, due to an increase in refineries output, offering boost to the crude market.
AxiTrader Asia Pacific market strategist Stephen Innes said: “Historical inventory patterns suggest that stocks should begin to hit seasonal bottom sometime in the next two-three weeks.”