Oil climbed after an industry report indicated that U.S. crude inventories fell for the first time in three weeks, countering growing concern that the global economy is headed for recession.

Futures in New York rose as much as 0.6% after rebounding to close up 0.2% in a volatile session on Tuesday. The American Petroleum Institute reported a 3.45 million-barrel draw-down last week, people familiar with the data said. President Donald Trump said Tuesday he could cut taxes without congressional approval as the U.S. economy flashes recessionary warning signs.

Oil has slumped around 15% since late April as the trade war between the world’s two largest economies weighed on demand. Simmering tension in the Middle East and efforts by the Organization of Petroleum Exporting Countries and allied producers to curtail output haven’t been able to arrest the slide.

West Texas Intermediate crude for October delivery added 20 cents, or 0.4%, to $56.33 a barrel on the New York Mercantile Exchange at 7:28 a.m. in London after being up as much as 31 cents earlier. The September contract settled 13 cents higher at $56.34 as it expired on Tuesday.

Brent for October settlement climbed 35 cents, or 0.6%, to $60.38 a barrel on the ICE Futures Europe Exchange after closing up 0.5% on Tuesday. The benchmark crude traded at a premium of $4.04 to WTI.

Source : Bloomberg