At 13:30 GMT, the US economy released its durable goods orders reading, which rose by 1.2% in February, higher than forecast of a drop by 1%, and higher than the previous reading of a drop by 0.2%.

While the core durable goods orders (excluding transportation items) fell by 0.6%, lower than forecast of a rise by 0.4%, and lower than the previous reading of a rise by 0.8% after it was revised from 0.9%.

The US benchmark crude turned lower as the US market opened on Wednesday, after rising earlier in European trade, as fears over the global demand slowdown mounted, while the US crude inventories dropped for the second straight week according to the API preliminary data, and traders are anticipating the EIA weekly report for the official data.

WTI crude fell to $23.19 a barrel, after it opened at $24.33, and hit a session-high of $25.2.

WTI gained 1.8% yesterday, its second straight daily gain, as the recovery attempts from an 18-year low continued.

Oil prices rose earlier in European trade as optimism dominated the global scene, thanks to the huge US stimulus measures, as the US stocks scored the largest daily gains since 1933 yesterday.

However, prices are weighed down by fears of a slowdown in global oil demand, amid estimates for drop by 25% in global demand.

The American Petroleum Institute (API) revealed yesterday in preliminary data the US crude inventories fell by 1.25 million barrels during the week ending in March 20, beating forecasts of rising by 2.5 million barrels.

While the US Energy Information Administration (EIA) will release today the official data on inventories and production levels in its weekly report, with forecasts for inventories to rise by 2.9 million barrels, while the US production rose last week 100 thousand bpd, to the US all-time high of 13.1 million bpd.

Oil prices continued to rise on Wednesday, to stretch the gains for the third straight day, amid growing hopes about the US stimulus measures to counter the coronavirus impact, in addition to a drop in the US crude inventories according to the API preliminary data.

WTI crude rose to $25.20 a barrel, after it opened at $24.33, and hit a session-low of $24.24, Brent crude rose to $28.26 a barrel, after it opened at $27.64, and hit a low of $27.50.

WTI gained 1.8% yesterday, and Brent futures rose 0.5%, their second straight daily gain, within recovery attempts from an 18-year low.

Optimism is currently the main driver behind global markets, thanks to the huge US stimulus measures, as the US stocks scored the largest daily gains since 1933 yesterday.

The US Federal Reserve on Monday announced extra stimulus measures and an open quantitative easing program, which is aimed at easing the impact of the virus outbreak on the US economy.

US Senators and the Trump administration agreed yesterday on the $2 trillion economic stimulus bill, and it is expected that the Congress will pass it later today.

The American Petroleum Institute (API) revealed yesterday in preliminary data the US crude inventories fell by 1.25 million barrels during the week ending in March 20, beating forecasts of rising by 2.5 million barrels.

While the US Energy Information Administration (EIA) will release today the official data on inventories and production levels in its weekly report, with forecasts for inventories to rise by 2.9 million barrels.

Gold prices fell on Wednesday, to pullback from the 2-week high hit earlier on corrections and profit-taking, but these losses remain limited as the US dollar continues to drop against most major currencies.

Gold prices fell 1.3% to $1,596.65 an ounce, after opening at $1,627.54, and hit the highest since March 12 of $1,636.30.

The yellow metal gained 4% yesterday, its third straight daily gain, and posted the largest daily gain since June 24, 2016, after the US Fed announced huge stimulus package.

The US Federal Reserve on Monday announced extra stimulus measures and an open quantitative easing program, which is aimed at easing the impact of the virus outbreak on the US economy.

The dollar index fell against a basket of major currencies by 0.5% today, reflecting a weak performance, which benefits gold prices.

The US dollar's drop comes in tandem with improved market sentiment, thanks to the huge US stimulus measures, as investors stopped hoarding cash to counter the liquidity shortages, as the US stocks scored the largest daily gains since 1933 yesterday.

US Senators and the Trump administration agreed yesterday on the $2 trillion economic stimulus bill, and it is expected that the Congress will pass it later today.

Gold stocks at the SPDR ETF rose by 11.99 metric tonnes yesterday, the second straight daily increase, to reach the highest total since March 12 at 923.99 MT.