On Wednesday, petroleum products prices inched up. It is with U.S. crude advancing 1.3% after an industry report showed stockpiles in the United States.
This is the world’s biggest oil user that dropped more than expected, easing fears about economic growth due to the China-U.S. trade conflict.
Brent crude futures mounted 59 cents, or 1.0%, to $60.10 a barrel. West Texas Intermediate (WTI) crude futures also increased 70 cents, or 1.3%, to $55.63 a barrel.
Last week, U.S. crude stockpiles declined sharply as imports dropped, plunging by 11.1 million barrels.
The data presented from industry group American Petroleum Institute (API) is in contrast with the expectations for a 2 million-barrel draw.
On Wednesday, the U.S. government’s weekly report is due in the morning. If the official numbers settle the API data, then it will be the biggest weekly downturn in nine weeks.
A managing partner at Valour Markets, Stephen Innes, said, “The mammoth crude inventory draw has, for the time being, put to rest those U.S. recessionary doom.”
The worries about global growth can possibly limit advances. It is amid the raging trade conflict between the United States and China, the world’s two major crude oil consumers.
On Monday, U.S. President Donald Trump indicated that he believed China was straight about wanting to arrive at a deal.
Meanwhile, Chinese Vice Premier Liu He said China was ready to clear up the dispute through “calm” negotiations.
Fears Recurred After the Additional Tariffs
However, concerns about the trade reappeared after China’s foreign ministry said it had not heard of any current telephone call between the United States and China on business.
Moreover, he indicated it anticipates Washington to stop its discourtesy and create settings for discussions.
In April, crude oil prices have collapsed by about 20%. It was from its 2019 highs.
It was because of doubts that the U.S.-China trade war is affecting the global economy and could depress petroleum products demand.
Morgan Stanley said, “Global recession risks are higher than at any stage since the (global financial crisis), and the U.S. is not immune.”
Last week, China’s Commerce Ministry stated it would impose additional tariffs of 5% or 10%.
It would be on 5,078 products produced from the United States.
The products comprise crude oil, agricultural products, and small aircraft.
In retribution, Trump said he was authorizing U.S. companies to look at ways in closing operations in China. He also said to continue the production of goods in the United States.
Gold Prices Plunge Despite Trade Qualms
Elsewhere, gold prices improved but remained close to a six-year high on Wednesday.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange were dragged down 0.4% to $1,545.25 a troy ounce.
In the previous session, gold futures grew $14.60, or 1%, to settle at $1,551.80 an ounce, the highest close since April 2013.
Prices of the yellow metal glided as investors locked in profits after the Tuesday’s gains.
Gold has been bolstered by a flight to safety. It was after the trade war between the U.S. and China escalated.
Meanwhile, improved safe-haven demand has also sent bond yields reducing.
The yield on the benchmark 2-year Treasury note also declined to 1.526% overnight, creating an inverted yield curve.
So far this month, gold has ascended around 7%. This year, it is also up nearly 18% as trade ambiguity lift the appeal of the asset as a store of value.