A rally in oil futures faded by the end of Thursday's trading session, prompting U.S. prices to erase nearly all of their earlier gains as plans for U.S.-China trade talks next month failed to fully calm nervousness over the outlook for the global economy.
Oil prices were up by nearly 3% to touch session highs following a third straight weekly drop in U.S. crude stockpiles, heightened tensions in the Middle East and news of the trade talks. Prices pulled back sharply just ahead of the end of the regular trading session.
West Texas Intermediate crude for October delivery edged up by 4 cents, or 0.07%, to settle at $56.30 a barrel on the New York Mercantile Exchange after trading as high as $57.76. A 4.3% rally on Wednesday marked the biggest dollar and percentage gain since July 10, according to Dow Jones Market Data.
The global benchmark, November Brent crude climbed by 25 cents, or 0.4%, to $60.95 a barrel on ICE Futures Europe—down from a high of $62.40. It rose 4.2% a day earlier.
Source : MarketWatch