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Oil Prices Recover as Trade Hopes Bolster Rebound

Published 16/08/2018, 16:45
© Reuters.  Crude rebounds for first time this week as trade tensions ease
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Investing.com - Oil prices traded slightly higher on Thursday, breaking a three-day losing streak, as hopes the U.S. and China could reconcile recent trade tensions eased worries over the impact on the global economy.

New York-traded West Texas Intermediate crude futures gained 35 cents, or 0.54% to $65.36 a barrel by 11:42 AM ET (15:42 GMT).

Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., rose 32 cents, or 0.45%, to $71.08.

White House economic advisor Larry Kudlow confirmed Thursday that Washington and Beijing will resume trade talks by the end of August, leading to hopes that the world’s two largest economies will begin to tone down tit-for-tat tariffs and avoid a global economic meltdown.

Crude has been under pressure as trade tensions have spurred worries of negative impact to the global economy, reducing demand for black gold.

Thursday’s more optimistic outlook on trade helped crude undergo a slight bounce on Thursday, following a three-day losing streak. U.S. crude ended Wednesday’s session with a 3% plunge after U.S. inventory data showed crude stockpiles had unexpectedly risen by 6.8 million barrels, surprising consensus that had forecast a draw of around 2.5 million barrels.

Also supporting gains, the dollar edged lower on Thursday, making the dollar-denominated asset more attractive to holders of foreign currency.

In other energy trading, gasoline futures fell 0.81% to $1.9758 a gallon by 11:44 AM ET (15:44 GMT), while heating oil inched up 0.09% to $2.0922 a gallon.

Lastly, natural gas futures traded down 1.12% to $2.907 per million British thermal units, after weekly storage data showed a larger-than-expected build.

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