Oil gains after strong U.S. retail sales help ease recession worries

TOKYO, Aug 16 (Reuters) - Crude oil prices rose on Friday
after two days of declines, buoyed following data showing a rise
in U.S. retail sales helped ease some concerns about a recession
in the world's biggest economy.
Brent crude LCOc1 was up 31 cents, or 0.5%, at $58.54 a
barrel at 0047 GMT, after falling 2.1% on Thursday and 3% the
previous day.
U.S. crude CLc1 was up 43 cents, or 0.8%, at $54.90 a
barrel, having fallen 1.4% the previous session and 3.3% on
Wednesday.
U.S. retail sales rose 0.7% in July as consumers bought a
range of goods even as they cut back on motor vehicle purchases,
according to data that came a day after a key part of the U.S.
Treasury yield curve inverted for the first time since June 2007
prompting a sell-off in stocks and crude oil. An inverted Treasury yield curve is historically a reliable
predictor of looming recessions.
"The robust U.S. economic data released overnight is
providing some degree of comfort as it suggests a less gloomy
U.S. domestic outlook and will walk back some of the more
immediate recessionary concerns," Stephen Innes, managing
partner at VM Markets, said in a note.
Also helping sentiment were comments from U.S. President
Donald Trump that negotiations with China on trade were
"productive," suggesting a possible easing of trade frictions
that have roiled markets. The price of Brent is still up nearly 10% this year thanks
to supply cuts led by the Organization of the Petroleum
Exporting Countries (OPEC) and allies such as Russia, a group
known as OPEC+. In July, OPEC+ agreed to extend oil output cuts
until March 2020 to prop up prices.
A Saudi official on Aug. 8 indicated more steps may be
coming, saying "Saudi Arabia is committed to do whatever it
takes to keep the market balanced next year".
But the efforts of OPEC+ have been outweighed by worries
about the global economy amid the U.S.-China trade dispute and
uncertainty over Brexit, as well as rising U.S. stockpiles of
crude and higher output of U.S. shale oil.