• Oil prices rise on lower U.S. inventories
  • Asian shares follow Wall Street higher
  • Middle East markets mostly traded higher on Tuesday
  • Dollar and gold hold steady

Oil prices

Oil prices added gains in early trading on Wednesday as data from the American Petroleum Institute showed late on Tuesday that United States’ crude inventories fell by 2.1 million barrels last week and as U.S. gasoline stocks dropped by a larger-than-expected 3.4 million barrels.

Brent crude was up 12 cents, or 0.2 percent, at $81.53 a barrel, after settling up 63 cents the session before.

U.S. West Texas Intermediate crude was up 15 cents, or 0.2 percent, at $72.07 a barrel by 0255 GMT on Wednesday, having settled up 14 cents.

“The market is reacting to the unexpected decline as inventories tend to rise at this time of year,” Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo, told Reuters, adding that anxieties about the outlook for the global economy were capping gains.

Inventory data from the U.S. Energy Department’s Energy Information Administration is due at 1430 GMT on Wednesday.

Global markets

Asian shares tracked higher on Wednesday a rebound overnight on Wall Street.

Upbeat U.S. earnings reports from major companies drove a rally in U.S. shares. The Dow jumped 2.17 percent, while the S&P 500 climbed 2.15 percent and the Nasdaq 2.89 percent.

“Analysts are looking at this reporting season in particular and the general data over the next couple of months for signs that the receding tailwinds of fiscal stimulus and the headwinds of tariffs are going to hit the U.S. market simultaneously,” Rakuten Securities Australia COO, Nick Twidale, told Reuters.

“On first viewing this doesn’t appear to be happening.”

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.7 percent.

Middle East markets

Saudi Arabia’s index gained 1.3 percent during Tuesday’s trading, in heavy volumes. Saudi Basic Industries surged 4.9 percent and Saudi Telecom added 5.3 percent.

Dubai’s index added 0.6 percent as Emaar Properties added 1.9 percent and Deyaar Development added close to 10 percent in high volumes. Neighbouring Abu Dhabi’s index closed mostly flat.

Qatar’s index added 2.0 percent, as Industries Qatar climbed 3.3 percent and banks like Qatar National Bank, Masraf Al Rayan and Qatar International Islamic Bank traded higher after reporting a rising profit in third quarter earnings.

Egypt's blue-chip index was up 1.2 percent. Ibnsina Pharma jumped 7.3 percent and Juhayna Food Industries gained 5.9 percent.

Kuwait’s index dropped 0.7 percent, Bahrain’s index fell 0.3 percent while Oman’s index edged down 0.2 percent.

Currencies

The dollar index, which measures the greenback against a basket of six major currencies flattened in early trading on Wednesday.

The dollar gained 0.13 percent against the Japanese yen, which traded at 112.40 to the dollar.

Precious metals

Gold prices were firm early on Wednesday as investors awaited for minutes from the U.S. Federal Reserve’s latest policy meeting.

Spot gold was up 0.1 percent at $1,224.70 an ounce at 0100 GMT. On Monday, it touched its highest since July 26 at $1,233.26 an ounce..

U.S. gold futures were down 0.2 percent at $1,228.30 an ounce.

(Reporting by Gerard Aoun; Editing by Shane McGinley)

(Gerard.aoun@refinitiv.com)

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