Oil rose as a forecast decline in U.S. crude inventories countered pessimism driven by a surprise contraction in American manufacturing and a warning to China from President Donald Trump.
Futures in New York climbed as much as 1% after closing 2.1% lower Tuesday. American stockpiles fell for a third week by 3.45 million barrels last week, a Bloomberg survey showed before official data due Thursday. That came after a U.S. factory gauge fell to its weakest level since 2016 and Trump tweeted that it will be tougher for China to secure a trade deal if it waits until he wins the 2020 U.S. presidential election. Elsewhere, financial assets rose on a report that Hong Kong Chief Executive Carrie Lam will formally withdraw a controversial bill that would have allowed extraditions to China.
WTI for October delivery rose 51 cents, or 1%, to $54.45 a barrel on the New York Mercantile Exchange as of 11:36 a.m. in London. Brent for November settlement added 37 cents, or 0.6%, to $58.63 a barrel on the ICE Futures Europe Exchange. The global benchmark crude traded at a $5.49 premium to WTI for the same month.
Source : Bloomberg