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Oil Prices Rebound After Worst Trading Day in 2019

Published 05/23/2019, 11:29 PM
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Investing.com - Oil prices rebounded on Friday in Asia after settling down almost 6% the previous session amid another surprisingly strong increase in U.S. stockpiles last week.

U.S. Crude Oil WTI Futures gained 1.2% by 11:20 PM ET (03:20 GMT). International Brent Oil Futures also rose 1.2% to $68.56.

Oil prices settled down more than 5% on Thursday. It was the steepest drops since the start of the year.

The slide came after the U.S. Energy Information Administration reported that crude inventories had unexpectedly risen by 4.74 million barrels last week, compared with the forecasted 600,000 barrel decline.

Stocks of gasoline and other distillates also rose, counter to expectations.

Oil prices and most risk assets were under pressure since trade negotiations between the U.S. and China hit an impasse earlier in the month. Asian shares are set to record a third week of losses and are currently trading near four-month lows.

Comments from the International Monetary Fund on Thursday that said "the latest escalation (of the U.S.-China trade war) could significantly dent business and financial market sentiment, disrupt global supply chains, and jeopardize the projected recovery in global growth in 2019” were also cited as denting investor sentiment.

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