Nickel, iron ore and oil all dropped, and shares of resources companies slipped in Asia.
SINGAPORE: Oil rallied for a fourth day, rising with other financial markets, as a report the U.S. and China are getting closer to reaching a trade deal overshadowed a bigger than expected jump in American crude stockpiles.
Futures in New York added as much as 0.5 percent after climbing 5.5 percent over the previous three sessions, while Brent flirted with $70 a barrel. U.S. and Chinese officials have resolved most of their trade issues but are still haggling over enforcement mechanisms, the Financial Times reported.
Industry data was said to show American crude stockpiles rose by 3 million barrels last week, three times more than estimated in a Bloomberg survey.
Oil has risen 38 percent this year on the back of aggressive output cuts by the Organization of the Petroleum Exporting Countries and its allies, which have been abetted by U.S. sanctions on Iran and Venezuela.
A resolution of the trade war between the world’s two largest economies would brighten a wobbly global demand outlook.
“We have been getting simultaneous signals on both the demand side and supply side that the picture is more price-positive than was previously thought,” said Michael McCarthy, chief market strategist at CMC Markets Asia Pacific Pty in Sydney.
“The demand picture is the key driver at the moment.”
West Texas Intermediate for May delivery gained 28 cents to $62.86 a barrel on the New York Mercantile Exchange as of 10:51 a.m. in Singapore after finishing up 1.6 percent on Tuesday.
Brent for June settlement rose 40 cents to $69.77 a barrel on the London-based ICE Futures Europe exchange after getting to $69.87 earlier. The global benchmark crude’s premium over WTI for the same month widened to $6.87 a barrel. - Bloomberg
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
