CORRECTED-Oil gains as inventory decline eases recession concerns

(Corrects headline to say decline not build)
TOKYO, Aug 28 (Reuters) - Oil prices rose on Wednesday, with
U.S. crude gaining 1% after an inventory report showed U.S.
stockpiles fell more than expected, helping ease worries about
economic growth from the Sino-U.S. trade war.
Brent crude LCOc1 was up by 41 cents, or 0.7%, at $59.92 a
barrel by 0121 GMT. West Texas intermediate crude CLc1 was up
by 57 cents, or 1.0%, at $55.50 a barrel.
U.S. crude stockpiles fell sharply last week as imports
dropped, plummeting by 11.1 million barrels, compared with
expectations for a 2 million barrel draw, data from industry
group, the American Petroleum Institute (API), showed. API/S
The U.S. government's weekly report is due to be released
Wednesday morning and if official numbers confirm the API data
then it will be the biggest weekly decline in nine weeks.
EIA/S
"The mammoth crude inventory draw has, at least for the time
being, put to rest those U.S. recessionary doom and gloom fears
that have been hanging over oil markets like a dark cloud," said
Stephen Innes, managing partner at Valour Markets.
Still, concerns about global growth amid the raging trade
war between the United States and China are likely to cap gains.
U.S. President Donald Trump said on Monday that he believed
China was sincere about wanting to reach a deal, while Chinese
Vice Premier Liu He said China was willing to resolve the
dispute through "calm" negotiations.
On Tuesday, however, concerns about trade resurfaced after
China's foreign ministry that it had not heard of any recent
telephone call between the United States and China on trade, and
said it hopes Washington can stop its wrong actions and create
conditions for talks. Crude oil prices have fallen about 20% from 2019 highs
reached in April, partly because of worries that the U.S.-China
trade war is hurting the global economy, which could dent demand
for oil.
China's Commerce Ministry last week said it would impose
additional tariffs of 5% or 10% on 5,078 products originating
from the United States, including crude oil, agricultural
products and small aircraft.
In retaliation, Trump said he was ordering U.S. companies to
look at ways to close operations in China and make products in
the United States.