Global oil prices increased driving on the bigger-than-expected decline in US crude inventories, although concerns on the US-China trade war continue to linger.

Brent crude futures jumped 40 cents to $69.85 per barrel, while US West Texas Intermediate (WTI) crude futures gained 48 cents to settle at $59.29 a barrel, reported Reuters.

The data from the American Petroleum Institute showed that the US crude inventories dropped by 5.3 million barrels last week to 474.4 million barrels. The decline is significantly more than the 900,000-barrel fall predicted by analysts polled by Reuters.

Oil prices continue to receive support by supply cuts from the Organization of the Petroleum Exporting Countries (OPEC) and other allied countries.

Falling exports from Iran also further tightened the market. Two industry sources told Reuters that crude exports from Iran dropped to less than half of its April levels after the US withdrew all exemptions to purchase Iranian oil. However, the price gains were restricted by the concerns that the trade dispute between the US and China will lead to an economic slowdown reducing fuel consumption.

Bernstein Energy was quoted by Reuters as saying in a note: “An escalating U.S.-China trade war represents a risk to oil markets.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“The IEA has lowered their demand estimate for 2019 to 100.4 million barrels per day (1.3% year-on-year) and we see the possibility of further negative demand revisions ahead.

“Under a full-blown trade war scenario, demand growth could be cut in half to 0.7% (year-on-year).”

Earlier, China’s National Development and Reform Commission told that refined fuel consumption in the country amounted to 27.06 million tonnes in April, a 2.4% drop from 2018.