Crude oil prices showed gains to begin Thursday with easing trade tensions between the U.S. and China providing optimism, while crude oil inventories in the U.S. experienced declines.
The price of international benchmark Brent crude was trading at $60.48 per barrel at 0645 GMT with a daily gain of 0.5 percent, after it ended Wednesday at $60.15 a barrel.
American benchmark West Texas Intermediate was recorded at $51.34 a barrel at the same time gaining 0.3 percent after it closed the previous day at $51.20 per barrel.
China bought between 1.5 million and 2 million metric tons of American soybeans on Wednesday, according to the U.S. Soybean Export Council.
This first soybean purchase since July is seen as a goodwill gesture reflecting Beijing's willingness to improve its trade relations with Washington.
U.S. President Donald Trump said Tuesday via social media 'Very productive conversations going on with China! Watch for some important announcements!'
Trump and his Chinese counterpart Xi Jinping agreed on Dec. 1 that the two countries would not impose further reciprocal tariffs for a period of 90 days. On July 6, Beijing had imposed 25 percent tariffs on its soy imports from the U.S. In 2017, China purchased 60 percent of the U.S.’ total soy exports.
Signs of trade tensions abating between the U.S. and China echoed market optimism that major impacts on the global economy or global oil demand would not emerge.
Oil prices also garnered support from the decline in U.S. crude oil production and inventories.
Crude stocks in the country fell by 1.2 million barrels for the week ending Dec. 7, data from the U.S.' Energy Information Administration (EIA) showed Wednesday.
During the same period, U.S.' crude production retreated by 108,000 barrels per day (bpd), from its record high level of 11.7 million bpd to 11.6 million bpd, according to the EIA.
Crude prices are expected to have an upward trajectory following OPEC and non-OPEC oil producing nations agreement on Dec. 7 to lower their output by a total of 1.2 million bpd for six months starting Jan. 1.
By Ovunc Kutlu
Anadolu Agency
energy@aa.com.tr