Oil rose as US inventory draws and US-China trade talks lift sentiment

Oil prices rose on Wednesday after data showed US crude and fuel inventories drew down more than expected last week, and as US President Donald Trump's optimistic tone over upcoming talks with his Chinese counterpart helped ease economic jitters.

Brent rose 52 cents, or 0.8%, to settle at $64.92 a barrel.

WTI gained 33 cents, or 0.6%, to close at $60.48.

Prices strengthened after data from the US Energy Information Administration (EIA) showed a larger-than-expected drawdown across crude, gasoline, and distillate inventories last week, signalling robust demand. Crude stocks fell by nearly 7 million barrels, far exceeding analysts’ forecasts for a modest 211,000-barrel decline.

The EIA data also pointed to strong implied demand, reinforcing a bullish tone in the market. Analysts said the combination of tighter inventories and improved consumption levels underscores a healthier near-term balance for oil.

Adding to the positive sentiment, investors turned optimistic ahead of the US-China leaders’ meeting in South Korea, which could ease trade tensions that have clouded the global economic outlook. A separate trade agreement with South Korea also helped temper concerns about slower economic activity linked to recent tariff disputes, providing further support for oil prices.

Written: Farid Muzaffar