Oil surges more than 1% ahead of US inventories data

Oil prices continued to rise as the US market opened on Tuesday, rising by more than 1%, in recovery attempts from the 6-week low hit earlier in the Asian trade, to head for the first daily gain in the last 7 days, after China's oil imports rose to a new record in 2019, in addition to Saudi Energy Minister upbeat remarks, and the US and China signing of the long-awaited trade deal.

West Texas Intermediate Crude (WTI) rose by 1.0% to $58.68 a barrel, after opening at $58.01, with a session-low of $57.76 (lowest since Dec. 6), and Brent rose by 1.1% to $65.00, after opening at $64.20, with a session-low of $63.94  (lowest since Dec. 12).

WTI closed lower by 1.9% on Tuesday, and Brent crude futures fell by 1.25%, their sixth daily loss, and the longest losing streak since Sept, as market concerns eased about the geopolitical tensions between the US and Iran.

China's General Administration of Customs showed that imports of crude oil rose by 10% during 2019, to record a new record for the 17th year, as demand from the new giant refineries increased, making China the world's largest oil importer.

Saudi Energy Minister Prince Abdulaziz bin Salman said that his country will work to balance the oil market, amid the escalating US-Iran tensions, to sustain prices and increase in demand.

Markets will focus on the signing of the phase-one trade deal between the US and China tomorrow at the White House, ending the more than 18 months old trade war, which has weighed down on the global economy and oil demand.

The American Petroleum Institute (API) will release the preliminary data on inventories and production levels in its weekly report later today, with forecasts for inventories to drop, and the US Energy Information Administration (EIA) will release the official data tomorrow.