Brent approaches $70 a barrel after a 4% surge
Oil prices surged on Wednesday amid mounting optimism in the markets as the US and China reached a trade agreement.
The US and China reached a trade framework in London after two days of intensive negotiations, with representatives waiting for the final approval of Trump and Xi Jinping to move forward.
Trump said China will supply rare-earth minerals and magnets to the US, and will get chip exports from America, with restrictions on Chinese students in US universities will be lifted as well.
Oil was also boosted after Iran threatened to strike US bases if America attempted an attack on its nuclear facilities.
US President Trump said he has less confidence now that Iran would agree to stop uranium enrichment.
Otherwise, the Energy Information Administration reported a drawdown of 3.6 million barrels in US crude stocks last week to a total of 432.4 million barrels, while analysts expected a drop of 2.4 million barrels.
Gasoline stocks rose 1.5 million barrels to 229.8 million barrels, while distillate stocks rose 1.2 million barrels to 108.9 million barrels.
On trading, Brent futures due in August rose 4.34%, or $2.9 to $69.77 a barrel.
US crude futures due in July rallied 4.88% to $68.15 a barrel.
Gold climbs on downbeat US data, weaker dollar
Gold prices rose on Wednesday as the dollar fell against most major rivals following weak data.
Earlier US data showed core consumer prices rose 2.8% y/y in May, as expected.
The US and China reached a trade framework in London after two days of intensive negotiations, with representatives waiting for the final approval of Trump and Xi Jinping to move forward.
This progress comes after an important deal reached in mid May, which stopped the enforcement of most tariffs for 90 days.
Trump said China will supply rare-earth minerals and magnets to the US, and will get chip exports from America, with restrictions on Chinese students in US universities will be lifted as well.
Otherwise, the dollar index fell 0.5% as of 20:43 GMT to 98.6, with a session-high at 99.2, and a low at 98.5.
On trading, gold spot prices rose 0.8% as of 20:45 GMT to $3369.6 an ounce.
US crude inventory drawdown bigger than expected
The Energy Information Administration reported a drawdown of 3.6 million barrels in US crude stocks last week to a total of 432.4 million barrels, while analysts expected a drop of 2.4 million barrels.
Gasoline stocks rose 1.5 million barrels to 229.8 million barrels, while distillate stocks rose 1.2 million barrels to 108.9 million barrels.
Wall Street climbs after inflation data, US-China trade framework
US stock indices gained ground on Wednesday following data and a trade framework between the US and China.
Earlier US data showed core consumer prices rose 2.8% y/y in May, as expected.
The US and China reached a trade framework in London after two days of intensive negotiations, with representatives waiting for the final approval of Trump and Xi Jinping to move forward.
This progress comes after an important deal reached in mid May, which stopped the enforcement of most tariffs for 90 days.
Trump said China will supply rare-earth minerals and magnets to the US, and will get chip exports from America, with restrictions on Chinese students in US universities will be lifted as well.
On trading, Dow Jones rose 0.4% as of 16:15 GMT to 43,021 points, while S&P 500 added 0.2%, or 14 points to 6052 points, as NASDAQ climbed 0.3% to 19,773 points.