21.11.201815:51:00UTC+00Crude Rebounds After Recent Setback, Ends Notably Higher

Crude oil prices rose on Wednesday, after having tumbled 6.6% to a 13-month low in the previous session amid concerns about excess supply and slowing global economy.

The positive start was due to a report from the American Petroleum Institute that showed a surprise crude oil inventory draw of 1.5 million barrels last week.

Data released by the U.S. Energy Information Administration this morning showed crude stockpiles to have risen for a ninth-straight-week. Once again, the increase was bigger than what was expected.

The report showed crude oil inventories in the U.S. increased by 4.85 million barrels in the week to November 16, up nearly twice the expected surge.

Gasoline inventories were down by 1.30 million barrels and distillate stockpiles declined marginally by 0.08 million barrels in the week.

Crude oil futures for January ended up $1.20, or about 2.3%, at $54.63 a barrel.

Even as worries about excess supply persisted, oil prices held firm amid speculation that OPEC and non-OPEC producers will consider a supply cut of 1 million to 1.4 million barrels per day, at their forthcoming meeting on December 6 at Vienna.

Still, it is feared that the ongoing U.S.- China trade dispute, if not resolved swiftly, will hurt global economic growth.

The Organization for Economic Co-operation and Development said earlier in the day that global economic growth has peaked and is now slowing as the world faces risks from rising trade tensions and tightening financial conditions, as it trimmed the global growth projection for next year. OECD has cut its global growth projection for next year to 3.5% from 3.7% predicted in May, in its latest Economic Outlook report. The global economy is forecast to expand 3.5% in 2020. The outlook for this year was left unchanged at 3.7%.

"There are few indications at present that the slowdown will be more severe than projected," OECD Chief Economist Laurence Boone said. "But the risks are high enough to raise the alarm and prepare for any storms ahead. Cooperation on fiscal policy at the global and euro level will be needed," he added.

The OECD report also warned that "a much sharper slowdown in Chinese growth would damage global growth significantly, particularly if it were to hit financial market confidence."