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Investing.com – Oil prices were down on Thursday in Asia, giving back some of their gains overnight following the release of data that showed a huge plunge in U.S. crude inventories.

U.S. were down 0.5% to $59.1 by 1:20 AM ET (05:20 GMT). International dropped 0.4% to $65.41.

The Energy Information Administration said in its regular weekly report that crude oil inventories plummeted by 12.79 million barrels in the week to June 21 – nearly four times the forecast draw and its largest decline since 2016 – while gasoline inventories and distillate stockpiles also unexpectedly decreased.

Oil prices jumped as much as 3% after the report, before giving up some of the gains today.

Looking ahead, the G-20 meeting will be in the spotlight for oil traders as Russian President Vladimir Putin will meet Saudi Crown Prince Mohammed Bin Salman to discuss the current production cut agreement between OPEC and other producers.

The outcome of the OPEC meeting due early next week is also expected to a major directional driver for oil markets.

On the Sino-U.S. trade front, U.S. Treasury Secretary Steven Mnuchin said overnight that “President Trump and President Xi have a very close working relationship” and that he is hopeful the two leaders could move forward with a plan.

“We were about 90% of the way there [with a deal] and I think there’s a path to complete this,” he said. “The message we want to hear is that they want to come back to the table and continue because I think there is a good outcome for their economy and the U.S. economy to get balanced trade and to continue to build on this relationship.”

However, Trump has warned that Washington could slap more tariffs on Beijing if not enough progress is made in trade discussions at the G-20 this weekend.

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