Oil strengthens in volatile trade ahead of expected U.S. crude drawdown - Reuters

Oil strengthens in volatile trade ahead of expected U.S. crude drawdown - Reuters:

Oil prices rose in volatile trade on Tuesday supported by expectations of a drawdown in U.S. crude inventories, though gains were capped by worries about a recession and uncertainty over a China-U.S. trade deal.

Brent crude LCOc1 settled up 81 cents, or 1.4%, at $59.51 a barrel. U.S. West Texas Intermediate crude CLc1 ended $1.29, or 2.4%, higher at $54.93 a barrel.

“We could have another one of these blockbuster (U.S. oil inventory) drawdowns - that’s supportive,” said John Kilduff, a partner at Again Capital Management in New York.

U.S. crude oil inventories were forecast to have fallen by over 2 million barrels last week, a Reuters poll showed, ahead of industry data at 4:30 p.m. EDT (2030 GMT) and the government’s report on Wednesday morning.