Oil prices rose as the European market opened today, for the first time in 3 days, on a sharp decline in OPEC output to the 16-year low according to the short-term energy outlook report by the EIA, while these gains are being curbed by the mounting concerns about the US-China trade talks in addition to a rise in US crude inventories according to API preliminary data.

WTI rose to $53.04 a barrel, from the opening of $52.55, with a session-low of $52.35.

Brent rose to $58.60 a barrel, from the opening of $57.96, with a low of $57.93.

WTI closed lower by 0.45% yesterday, and Brent futures also fell by 0.5%, their second daily loss on the escalating trade tensions between the world's two largest economies.

The US Energy Information Administration (EIA) showed in the report that OPEC output declined to 28.2 million barrels per day in September, lower by 1.6 million bpd from August, the lowest since November 2003 as a result of supply disruptions in Saudi Arabia.

Additionally, a monthly Reuters survey showed last week that OPEC production slumped to 8-year low in September, losing around 750,000 barrels per day to a total of 28.9 million.

A new round of the US-China trade talks will launch on next Thursday in Washington, DC, in attempts to end the ongoing raging trade war between the world's two largest economies.

Hopes for the US-China trade talks ebbed after the US Commerce Department blacklisted 28 Chinese companies and government agencies over Beijing’s treatment of Uighurs Muslims and other predominantly Muslim ethnic minorities.

The American Petroleum Institute (API) revealed yesterday in preliminary data that the US oil inventories rose by 4.1 million barrels during the week that ended in October 4, its third straight weekly rise, beating forecasts of a rise by 1.4 million barrels.

While the official inventories data will be released later today, in the US Energy Information Administration's weekly report, with forecasts of a rise by 1.8 million barrels for the fourth week.

Asian stocks opened in the negative territory today, pressured by the US Commerce Department's announcement of blacklisting 28 chinese  companies and government agencies due to human rights violations in addition to putting visa restrictions on Chinese officials linked to the mass detention of the Uyghurs muslims minority in Xinjiang.

In return the Chinese government urged the removal of these sanctions and called on the US to stop interfering in the country's internal affairs, which comes ahead of the upcoming trade talks round between the two countries on Thursday and Friday.

Whilst, the Chinese Vice Premier, Liu He, and Governor of the People's Bank of China, Yi Gang, confirmed earlier this week their visit to Washington for the next round of talks in Oct 10 and 11, while the US administration's decision to increase the tariffs to 30% on Chinese imports worth $250 billion will come into effect by Oct 15.

The Japanese stocks fell today, as the Topix fell by 0.50% or 7.95 points to 1,578.55 points, and Nikkei 225 fell by 0.67% or 144.80 points to 21,442.98.

The Chinese stocks also fell, as CSI 300 fell by 0.16% or 6.00 points to 3,831.68, while the Shanghai Composite index fell by 0.06% or 1.68 points to 2,911.89.

Hong Kong's Hang Seng fell by 0.32% or 83.96 points to 25,809.44, New Zealand's NZX 50 fell by 0.45% or 50.02 points to 10,966.13, and the Australian S&P/ASX 200 fell by 0.66% or 43.23 points to 6,550.20.

The American Petroleum Institute (API) revealed in preliminary data that the US crude inventories rose by 4.1 million barrels during last week, beating forecasts of 2.4 million.

The gasoline inventories fell by 5.9 million barrels, and the distillate inventories fell by 4 million barrels.

While the EIA will release the official data tomorrow, which sharply impacts oil prices.

US stocks closed a volatile day of trading on Tuesday to deepen losses as investors struggled with mounting concerns about the US-China trade war, following Fed Chair Jerome Powell's remarks.

The US administration announced the blacklist of 28 Chinese companies and put visa restrictions on Chinese officials to enter the US due to Beijing’s human rights violations and the abuse of Muslim ethnic minorities.

Otherwise, the US producer price index (PPI) fell by 0.3% in September, which came worse than forecasts of a rise by 0.1%.

The US Federal Reserve Chairman Jerome Powell stressed that the US economy growth can be sustained and inflation is near the Fed's target at 2% despite the global risks.

Which comes amid a division between the Fed's members on the further rate cuts, after it was cut twice this for first time since the 2008 global financial crisis.

Powell added that the Fed will purchase treasury bills to increase liquidity and ease restrictions to increase banks' reserves.

In the oil market, WTI fell by 0.2% to close at $52.63 a barrel, with a season-high of $53.2 and a low of $51.8.

Brent fell by 0.2% to $58.24 a barrel, with a high of $58.9 and a low of $57.3.

Dow Jones lost 1.2% or 314 points to close at 26,164 points, with an intraday high of 26,421 points and a low of 26,139 points.

Nasdaq also shed 1.6% or 123 points to close at 7,823 points, with a high of 7,921 points and a low of 7,823 points.

S&P 500 fell by 1.5% or 45 points to close at 2893 points, with a high of 2925 points and a low of 2892 points.