Oil prices opened higher Friday rebounding from their lowest level in two months. after plummeting by around 5% on Thursday due to escalating Sino-U.S. trade tensions that are threatening global demand. and with the rise of crude inventories in the U.S.
International benchmark Brent crude was trading at $68.50 per barrel with a 0.72% gain after closing Thursday at $68.01 a barrel.
American benchmark West Texas Intermediate (WTI) was at $58.52 a barrel for a 0.57% increase after ending the previous session at $58.19 per barrel.
On Thursday. Brent crude lost 4.2% falling to $67.02 per barrel. marking its lowest level since March 28. while WTI declined 5.26% to $57.34 a barrel — its lowest level since March 13.
On Thursday. China said its trade negotiations with the U.S. could not continue unless Washington addresses its `wrong actions.`
`If the U.S. would like to keep on negotiating it should. with sincerity. adjust its wrong actions. Only then can talks continue.` Gao Feng. a spokesperson at the Chinese Ministry of Commerce. was quoted as saying by CNBC.
While the trade tensions between the world`s two largest economies continue to threaten oil demand around the world. rising crude inventories in the U.S. intensified worries over a glut of supply in the global oil market.
Commercial crude oil inventories in the U.S. increased by 4.7 million barrels. or 1%. to 476.8 million barrels for the week ending May 17. according to the U.S.` Energy Information Administration (EIA) on Wednesday. The market expectation was a decrease of 600.000 million barrels.