Oil prices rose on Thursday as investors reacted to improving sentiment surrounding U.S. trade negotiations, which could alleviate pressure on the global economy, reports Baltimore Chronicle with reference to Reuters.
Brent futures gained 0.3%, reaching $68.72 per barrel, while WTI rose to $65.47. Both benchmarks barely changed the previous day, with markets closely monitoring further actions by the U.S. after President Donald Trump announced a trade deal with Japan.
According to Hiroyuki Kikukawa from Nissan Securities, the rise in oil prices was driven by hopes that the breakthrough in U.S. trade talks would prevent the worst-case scenario for global demand. At the same time, uncertainty in U.S.-China relations, as well as ongoing negotiations between Russia and Ukraine, continue to limit more decisive price increases.
Positive momentum was also supported by official data from the U.S. Energy Information Administration: crude oil inventories dropped by 3.2 million barrels, exceeding analysts’ expectations of a 1.6 million barrel decrease. Gasoline inventories fell by 1.7 million barrels, while distillate stocks rose by 2.9 million barrels, staying close to seasonal lows.
However, geopolitical factors are still pressing on the market: talks between Ukraine and Russia in Istanbul yielded no breakthrough, and temporary disruptions were reported in the loading of oil tankers in the Black Sea. Additionally, the U.S. announced that it might consider sanctions against Russian oil, while the EU introduced a new sanctions package with tougher price caps.
Earlier we wrote that global oil prices dip amid Trump’s new tariff threats.