Global oil prices rallied as the US market opened on Tuesday ahead of the release of preliminary data on US crude inventories after declining earlier in European market on signs of worsening global economic growth from the US-China trade war, in addition to forecast about US shale oil production accelerating to a new record high in July.
By 12:55 GMT, US crude rose to $52.25 per barrel from the opening of $51.91, recording a high of $52.30 and a low of $51.49.
Brent rose to $61.05 per barrel from the opening of $60.95 and recorded a high of $61.10 and a low of $60.24.
US crude fell 1.1% yesterday, and Brent crude lost 1.7%, their first loss in three days, on the gloomy outlook for global oil demand growth.
A preliminary report on US commercial crude stocks by the American Petroleum Institute (API) will released later today and the official data will released on Wednesday by the US Energy Information Administration (EIA).
Saudi Energy Minister Khalid al-Faleh said at the weekend that OPEC will probably meet in the first week of July and hoped to reach an agreement on extending the global supply cut until the end of this year.
Global oil prices lost an average of 2.5% over the past week, the third weekly loss in a month, under pressure from global trade wars and its negative impact on the global economy.
Oil prices have fallen more than 20% from their peak levels in 2019, hit in April, due to worsening trade disputes between the United States and China, and negative data from most of the world's major economies.
In the United States, the Federal Reserve Bank of New York said on Monday that its measure for business in New York fell sharply in June, hitting its lowest level in more than two and a half years, signaling a sudden contraction in domestic activity.
Whilst the US corporate sentiment declined as tensions over US-China trade worsened, marking a slowdown in activity in the world's largest economy.
The US Department of Energy said on Monday that the country's oil production is expected to reach a new record high in July. while the US production reached a new record high of 12.4 million barrels per day during the week ending in May 31.