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.