Oil prices rose on Wednesday, after data from the
American Petroleum Institute showed a sharp decline in U.S. crude inventories
was completely contrary to expectations, which in turn eased concerns that have
increased as escalations in the trade war of the states between The United
States and China.
Brent crude futures rose today, reaching levels at $60.10
per barrel by 09:07 GMT, while Brent crude opened the day at $60.02 per barrel.
West Texas Intermediate (WTI) crude futures also rose
today, reaching near $55.67 per barrel, while it opened near 55.66 levels, its
highest level during the day's session was $55.78 per barrel.
On the other hand, data released by the American
Petroleum Institute on Tuesday because U.S. crude inventories have seen a
significant decline during the past week, where imports fell by 11.1 million
barrels, which exceeded the expectations that receded about the decline of
inventories American with only two million barrels.
The trade war and its impact on the oil market
More to mention, that this recovery in the oil market
despite the decline in U.S. inventories would swallow the cloud of concerns
about the U.S. recession by some extent, while concerns about slowing global
growth due to the ongoing trade war are increasing and are expected to overcome
trade War gains.
The consequences of the U.S.-China trade war on the
world oil market were partly due, with crude oil prices falling by as much as
20% from the highest level recorded in April 2019.
As If the trade war between the world's two largest
economies continues to escalate and no trade agreement is expected to satisfy
the two countries, it will in turn reduce oil demand along with the negative
consequences for the global economy.