Oil prices climbed slightly in Asian trading on Thursday, supported by data revealing a sharp decline in U.S. crude stockpiles. Meanwhile, investors stayed watchful as trade negotiations advance ahead of President Donald Trump’s upcoming tariff deadline.
At 22:18 ET (02:18 GMT), September Brent futures increased by 0.3% to $68.69 per barrel, while West Texas Intermediate (WTI) crude futures also rose 0.3% to $65.45 per barrel.
Both contracts have slipped over the past four sessions amid growing concerns that the August 1 tariff deadline could weigh on energy demand.
EIA Reports Significant Drop in U.S. Crude Inventories
The Energy Information Administration (EIA) said Wednesday that U.S. crude stocks declined sharply last week, reflecting higher refinery throughput and strong exports, providing support for oil prices.
Crude inventories fell by 3.17 million barrels for the week ending July 19, well beyond analysts’ expectations of a 1.6 million-barrel decrease.
With commercial crude supplies now around 9% below the five-year seasonal average, at roughly 419 million barrels, the market faces tightening supply conditions.
Gasoline inventories also dropped by 1.7 million barrels, surpassing forecasts for a 900,000-barrel reduction, while distillate stocks rose by 2.9 million barrels as part of seasonal replenishment.
Following the data, oil prices rallied on signs of supply constraints paired with resilient demand in the U.S. market.
Trade Deal Developments Draw Investor Attention After U.S.-Japan Pact
President Trump revealed a trade agreement with Japan on Wednesday that sets tariffs on Japanese imports at 15%, reduced from an earlier proposed 25%.
The deal includes a commitment of $550 billion in Japanese investments into the U.S. economy and opens Japanese markets to U.S. exports including vehicles, agricultural goods, and energy products.
This agreement is the most significant in a series of trade deals negotiated by the administration before the August 1 tariff deadline, raising hopes for further agreements.
Still, investors remain cautious, especially regarding a potential deal with the European Union, which has hinted at retaliatory measures against U.S. tariffs.
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