Sunday, Jun 07, 2020 | Last Update : 05:16 AM IST

74th Day Of Lockdown

Maharashtra80229286942849 Tamil Nadu2869415762235 Delhi2633410315708 Gujarat19119130111190 Rajasthan100847359218 Uttar Pradesh97335648257 Madhya Pradesh89965878384 West Bengal73032912366 Karnataka4835169357 Bihar4598223329 Andhra Pradesh4250256573 Haryana3597120924 Telangana32901627113 Jammu and Kashmir3142104835 Odisha247814819 Punjab2415204347 Assam19894434 Kerala170071215 Uttarakhand115328610 Jharkhand7642975 Chhatisgarh6781892 Tripura6221730 Himachal Pradesh3691636 Chandigarh3022225 Goa126570 Manipur124110 Puducherry90330 Nagaland8000 Arunachal Pradesh3710 Meghalaya33131 Mizoram1710 Sikkim200

Oil gains, led by US crude, as recession worries ease

REUTERS
Published : Aug 28, 2019, 11:54 am IST
Updated : Aug 28, 2019, 11:54 am IST

Crude oil prices have fallen about 20 per cent from 2019 highs reached in April.

US crude stockpiles fell sharply last week as imports dropped, plummeting by 11.1 million barrels.
 US crude stockpiles fell sharply last week as imports dropped, plummeting by 11.1 million barrels.

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 USD 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 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 the United States and China, which are the two biggest crude oil consumers, are likely to cap gains.

US President Donald Trump said on Monday that he believed China was sincere about wanting to reach a deal, while Chinese Vice Premier Liu He said China was willing to resolve the dispute through “calm” negotiations.

On Tuesday, however, concerns about trade resurfaced after China’s foreign ministry that it had not heard of any recent telephone call between the United States and China on trade, and said it hopes Washington can stop its wrong actions and create conditions for talks.

Crude oil prices have fallen about 20 per cent from 2019 highs reached in April, partly because of worries that the US-China trade war is hurting the global economy, which could dent demand for oil.

“Global recession risks are higher than at any stage since the (global financial crisis) and the US is not immune,” Morgan Stanley said.

China’s Commerce Ministry last week said it would impose additional tariffs of 5 per cent or 10 per cent on 5,078 products originating from the United States, including crude oil, agricultural products and small aircraft.

In retaliation, Trump said he was ordering US companies to look at ways to close operations in China and make products in the United States.

Tags: oil price, crude oil, opec
Location: Japan, Tokyo-to, Tokyo
ADVERTISEMENT
ADVERTISEMENT