Oil prices climbed during Wednesday’s trading
session, recovering slightly from the lowest levels in nearly a month recorded on
Tuesday, as the improvement in Chinese services data eased fears of global
slowdown.
As of 09:16 GMT, Brent crude oil
futures rose 0.53 percent at $58.58 a barrel, while the session's
highest level was recorded at $58.62 a barrel.
West Texas index was 0.67 percent up at
$54.30 a barrel, after it hit a top at $54.39 per barrel.
Global markets rose today after a private survey
showed that private sector activity in China grew at a three-month pace in
August after new orders surged, spurring the biggest increase in employment in
more than a year.
Given the fact that China considered the world's
second largest oil consumer and largest importer, fears of global slowdown
eased and therefore giving some room to crude prices to rebound after three
straight sessions of decline.
On the other hand, the U.S. President
Donald Trump warned yesterday that he would be "tougher" on Beijing
in a second term if trade talks between the American and the Chinese
sides continued, reigniting market fears that U.S.-China
trade escalations could cause a U.S. recession.
Oil prices fell to a near-month low on Tuesday
after data showed U.S factory activity contracted in August for the first time
in three years and the eurozone manufacturing sector contracted for the seventh
month in August.
Later in the day, investors will await the release
preliminary U.S. inventories data, where the U.S. Energy Information
Administration will release official figures on Thursday.
Russia's Energy Minister Alexander Novak said in
press statements that his country will fully abide by the OPEC agreement to
reduce the world oil supply this month, adding that Russia's crude oil
production was about 143,000 barrels per day lower than October 2018 levels.
The dollar index extended its drop to 98.52,
resuming its fall from May 2017 peak of 99.31 recorded the previous session.