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Oil prices jumped on Thursday. bouncing back from heavy losses in the previous session. buoyed by moves to ease trade tensions between Washington and Beijing and a drop in U.S. crude inventories to the lowest in nearly a year.
Brent crude futures rose 41 cents. or 0.7%. to $61.22 by 0051 GMT. while U.S. West Texas Intermediate (WTI) futures gained 40 cents. or 0.7%. at $56.16.
The rise came after China moved to exempt some U.S. anti-cancer drugs and other goods from tariffs. while President Donald Trump announced a delay to scheduled tariff hikes on billions of dollars` worth of Chinese goods.
The concessions came days ahead of a planned meeting aimed at defusing the long-running trade row between the world`s two largest economies.
Trump`s move is `a significant goodwill gesture that he too is willing to negotiate to put an end to this trade war spat.` said Stephen Innes. Asia Pacific market strategist at AxiTrader.
The price upswing on Thursday came after both of the principal global benchmarks fell sharply in the previous following a report that President Trump had weighed easing sanctions on Iran. a move that would potentially boost global crude supply at a time of rising concerns about oil demand.
Boosting the market`s good mood. the U.S. Energy Information Administration said on Wednesday that U.S. crude oil stockpiles fell last week to the lowest in nearly a year. as refineries raised output and imports fell.
`Historical inventory patterns suggest that stocks should begin to hit seasonal bottom sometime in the next two-three weeks.` AxiTrader`s Innes said.
Crude inventories fell for a fourth straight week. decreasing 6.9 million barrels in the week to Sept. 6 — more than double analysts` expectations of a 2.7 million-barrel draw down.
At 416.1 million barrels. U.S. crude oil inventories were at their lowest since October 2018. and about 2% below the five-year average for this time of year. the EIA said.
