Oil prices soared more than 1.5 percent during Thursday’s Asian session after U.S. crude stocks dropped by 12.1 million barrels last week, according to data from the American Petroleum Institute. This plunge was in sharp contrast to expectations of a rise by about 200,000 barrels. This may be the largest weekly drawdown in crude stocks to shake the market since April 1985. Data out Thursday in the United States is expected to confirm this draw.
U.S. crude stocks have been at record highs in the past two years, leaving analysts surprised by the sudden draw. NYMEX crude for October delivery rose 79 cents to $46.29, following a rise of 67 cents in the previous session. Crude was also boosted by positive Chinese trade data which showed that China boosted its crude oil trade imports by 5.7 percent compared to July.
More Data from China
Other data from China contributed additional positive signs about the country’s economic rebound. The country’s exports declined 2.8 percent from last year, announced the General Administration of Customs on Thursday, with a prediction that the number would fall further in the fourth quarter. Imports were up 1.5 percent since last year, the first increase in 21 months, hinting that domestic demand is increasing. If these signs towards trade recovery continue moving forward, fears about China’s disproportionate economy may finally begin to fade, giving a much-needed boost to the global economy as well.