Oil prices rise as global trade tensions ease

Crude prices rose in early trade on Thursday, recovering from the previous session's losses. The rebound was driven by better-than-expected economic data from top oil consumers and easing global trade tensions, Reuters reports.

US crude oil inventories dropped by 3.9 million barrels last week, reaching 422.2 million barrels, according to data from the Energy Information Administration (EIA). Experts predicted a decrease of 552,000 barrels. The larger-than-expected decline suggests that refineries are ramping up fuel production, oil supply is tightening, and demand for crude is rising.

The latest Fed report showed increased economic activity in the US. However, the outlook remains cautious as the administration’s import tariffs are putting pressure on prices.

The data also showed that China's June crude oil throughput was up 8.5% from a year ago, implying stronger fuel demand in the country. The easing of trade tensions between the US and China has also provided support to oil prices, according to Reuters.