2019.08.2806:12:00UTC+00Oil Extends Gains Buoyed By US Stock Drawdown

Oil prices rose on Wednesday to extend gains from the previous session after industry data showed a drawdown in U.S. crude inventories.

Benchmark Brent crude jumped 62 cents, or 1.05 percent, to $59.65 a barrel, while West Texas Intermediate (WTI) crude futures were up by 77 cents, or 1.4 percent, at $55.70 a barrel.

The two benchmarks, however, remain on track to post losses of around 8 percent and 5 percent, respectively, following sharp escalations in the Sino-U.S. trade war.

The American Petroleum Institute (API), an industry group, has estimated a staggering crude oil inventory draw of 11.1 million barrels last week, compared with expectations for a 2-million-barrel draw. The U.S. government's weekly inventory report is due later in the day.

The U.S.-China trade tensions escalated recently after both sides launched a new round of tariffs on each other's exports.

Later, after Chinese Vice Premier Liu He said China was willing to resolve the dispute through "calm" negotiations, U.S. President Donald Trump said he believed Beijing was sincere about wanting to reach a trade deal.

On Tuesday, however, China's foreign ministry said it had not heard of any recent telephone call between the United States and China on trade.