CORRECTED-UPDATE 3-Oil rises after inventory draw eases recession worries

(Corrects headline to say draw not build)
* U.S. oil rises 1.3%, Brent 1.0%
* Inventories fall by 11.1 mln barrels -API
* Graphic on U.S. inventories: https://tmsnrt.rs/2y7dfqh

By Aaron Sheldrick
TOKYO, Aug 28 (Reuters) - Oil prices rose on Wednesday, with
U.S. crude gaining 1.3% after an industry report showed
stockpiles in the United States, the world's biggest oil user,
fell more than expected, easing worries about economic growth
due to the China-U.S. trade war.
Brent crude futures LCOc1 climbed 59 cents, or 1.0%, to
$60.10 a barrel by 0652 GMT. West Texas Intermediate (WTI) crude
futures CLc1 gained 70 cents, or 1.3%, to $55.63 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 Wednesday morning
and if the 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, the world's two biggest
crude oil consumers, 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 said it had not heard of any recent
telephone call between the United States and China on trade, and
that it hopes Washington can stop its wrong actions and create
conditions for talks. Crude oil prices have fallen about 20% from 2019 highs hit
in April, partly because of worries that the U.S.-China trade
war is hurting the global economy and could dent oil demand.
"Global recession risks are higher than at any stage since
the (global financial crisis) and the U.S. is not immune,"
Morgan Stanley said.
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.

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CHART: Brent oil may extend gains into $60.44-$60.72 range
L3N25O06W
GRAPHIC: U.S. crude inventories https://tmsnrt.rs/2y7mC9g
CHART: U.S. oil signals mixed L3N25O0TN
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