Investing.com - Oil prices rose on Wednesday in Asia even after Japan reported weaker-than-expected core machinery orders, while a Chinese commerce ministry official warned that China's trade faces rising uncertainties this year.
Ren Hongbin, an assistant minister at China’s commerce ministry, made the comment at a news conference.
Meanwhile, Japan’s core machinery orders in November dropped sharply as the impact of the U.S.-China trade dispute began to spill into the global economy, adding to concerns that the outlook for the global economy has darkened further.
Elsewhere, British lawmakers on Tuesday rejected Prime Minister Theresa May's deal to leave the European Union.
The House of Commons voted 432 versus 202 against Prime Minister May’s Brexit Deal. Following the defeat, May now faces a confidence vote in Parliament later today.
Despite the reports, the Crude Oil WTI Futures gained 0.1% to $52.16 while the Brent Oil Futures also rose 0.2% to $60.75.
Expectations of further tax cuts from China and a record daily net cash injection via reverse repo operations by the People’s Bank of China were cited as tailwind for oil prices today.
In other news, U.S. crude oil output is expected to jump to a record of more than 12 million barrels per day (bpd) in 2019 and to climb to nearly 13 million bpd in 2020, the U.S. Energy Information Administration said on Tuesday.