The massive market transformation this month that some on Wall Street called a "once in a decade opportunity" might have just been a one-off technical move because of taxes.Marketsread more
The Pentagon will deploy U.S. forces to the Middle East on the heels of the attack on Saudi Arabian oil facilities, United States Secretary of Defense Mark Esper announced...Defenseread more
Iran's audacious drone and cruise missile attack on Saudi Arabia's oil producing facilities has provided a critical test yet for the Trump administration's foreign policy. A...Politicsread more
Shares of MasterCard are up 46% this year, and 1120% since 2011, getting a boost from the strong U.S. consumer.Investingread more
Chinese trade negotiators suddenly canceled a visit to meet U.S. farmers after they wrapped up trade talks in Washington this week.Marketsread more
Blackstone Executive Vice Chairman Tony James says he's less optimistic now than before that the U.S.-China trade war could be resolved, but even a smaller deal could help...World Economyread more
Progress on trade talks will determine how far market will move above new highs.Trader Talk with Bob Pisaniread more
"Sure, the trade war's taking its toll on business ... it's just not taking its toll where it was supposed to," Jim Cramer says.Mad Money with Jim Cramerread more
Joe Biden called on President Donald Trump Friday to release the transcript of a call with a foreign leader that is the subject of a whistleblower complaint. Biden described...Politicsread more
President Trump also said he is "not looking for a partial deal" with Beijing, moving away from his suggestion last week that he would consider an "interim deal."Politicsread more
* U.S. crude inventories dropped more than expected in week -EIA
* China, U.S. to hold trade talks in October
* OPEC-led supply cuts support, but output rises in August (Updates prices and adds analyst comment)
NEW YORK, Sept 5 (Reuters) - Oil prices rallied about 1% on Thursday on a sharp decrease in U.S. crude inventories and investor hopes of progress in resolving the U.S.-China trade feud.
Global benchmark Brent crude gained 66 cents, or 1.1%, to$61.36 a barrel by 1:33 p.m. EDT (17:33 GMT). U.S. West Texas Intermediate (WTI) crude added 57 cents, or 1%, to $56.83 a barrel.
U.S. crude, along with gasoline and distillate inventories, fell last week. Crude stocks dropped 4.8 million barrels, which was more than the 2.5 million barrel draw analysts had expected, the Energy Information Administration said.
Net U.S. crude imports, however, rose last week by 934,000 barrels per day.
"It's definitely a bullish report all around," said Bob Yawger, director of energy futures at Mizuho in New York. "A big import number would usually be bearish, but it didn't seem to dent the bullish end to the equation."
The volume of U.S. crude oil in storage should decrease in coming weeks before reversing course with the end of peak driving season and the start of significant refinery maintenance work, said Andrew Lipow, president at Lipow Oil Associates in Houston.
Crude prices had gained more than 4% on Wednesday as positive Chinese economic data sparked a wider market rally.
On Thursday, China said Beijing and Washington had agreed to hold high-level trade talks in early October, which helped boost prices as investors hoped for an easing of the trade war between the world's two top economies that has taken a toll on global growth.
However, the market remained cautious than any deal would come together soon, limiting the oil rally.
"I think the market across the board has built in as much hopefulness as they can about the U.S.-China trade war," said John Kilduff, a partner at Again Capital in New York.
The prolonged U.S.-China trade dispute has been a dampener on oil prices, but Brent is still up about 12% this year, helped by production cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia.
Nonetheless, both OPEC and Russia boosted production in August, according to a Reuters survey and Russian energy ministry figures, weighing on prices.
Also putting downward pressure on prices has been mounting evidence of slowing economic growth worldwide, which has prompted analysts to lower forecasts for oil demand growth.
BP Chief Financial Officer Brian Gilvary told Reuters on Wednesday that global oil demand was expected to grow by less than 1 million barrels per day in 2019, a slowdown from previous years. (Additional reporting by Alex Lawler and Aaron Sheldrick, Jessica Resnick-Ault and Scott DiSavino in New York; Editing by David Evans, Mark Potter, David Gregorio and Cynthia Osterman)