Mubasher: Oil prices rose on Wednesday, paring losses seen during several sessions, as industry figures showed an unexpected drawdown in US crude stockpiles, according to Reuters.

However, gain were capped by dismal economic readings in the US, fuelling a tumble across global equity markets.

By 8:10 am GMT, US Nymex crude futures climbed by 0.80% to $54.05 per barrel (pb), while international benchmark Brent futures rose by 0.29% to $59.06 pb.

Nymex settled lower for the sixth consecutive session on Tuesday, following a report showing US factory output hitting a 10-year trough, as exports were weighed down by the trade tensions with China.

Both contracts pared losses in early trading, even with lower trading volume because of regional holidays, according to OANDA senior market analyst Jeffery Halley.

This followed the American Petroleum Institute’s (API) data which showed a drop of 5.9 million barrels in US crude oil inventories, versus expectations of a buildup of 1.6 million barrels.

However, crude prices are currently below levels seen before the attacks on Saudi Arabia’s oil installations, as the world’s biggest producer resumed its production and capacity to the full.

“That means the market is not pricing in any risk premium from further potential attacks,” Singapore-based OCBC bank economist Howie Lee was quoted by Reuters.

In the same context, Iranian Oil Minister Bijan Zanganeh announced that he is willing to meet his Saudi counterpart in Moscow, but Riyadh has a problem with meeting during the Gas Exporting Countries Forum, the news agency quoted the official IRNA outlet.   

“The energy market must be non-political in order to prevent unilateral and illegal interference,” Zanganeh said.