Oil prices rose modestly on Thursday, buoyed by renewed optimism surrounding U.S. trade negotiations and a sharper-than-expected decline in U.S. crude inventories.
Brent crude futures gained 21 cents, or 0.3%, to reach $68.72 a barrel by 03:35 GMT. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures rose by 22 cents, or 0.3%, to $65.47 per barrel.
The market remained largely steady on Wednesday as traders assessed the progress of ongoing trade talks between the United States and the European Union. This followed a recent deal between U.S. President Donald Trump and Japan, which lowered auto import duties and averted new tariffs. In return, Japan agreed to a $550 billion investment and loan package aimed at U.S. markets.
“Buying was driven by optimism that progress in tariff negotiations with the U.S. would help avoid a worst-case scenario,” said Hiroyuki Kikukawa, Chief Strategist at Nissan Securities Investment.
However, Kikukawa cautioned that uncertainties in U.S.-China trade discussions and unresolved tensions in the Russia-Ukraine conflict may limit oil’s upside potential. He predicted that WTI prices will likely remain in a narrow band of $60 to $70 in the near term.
