WTI Crude Rises Above $65 on US Trade Deal Optimism and Inventory Drop

WTI Crude Above $65 on Trade Deal Optimism and Inventory Drop

West Texas Intermediate (WTI) crude oil prices are trading modestly higher, climbing to $65.30 in early Asian trading on Thursday. The gains reflect improved investor sentiment following recent US trade deals and a sharper-than-expected drop in US crude inventories.

Trade Deals Boost Market Sentiment

US President Donald Trump announced successful trade deals with Japan and the Philippines, sparking optimism in global commodity markets. Additionally, EU officials noted progress toward an agreement with the US that would implement a 15% tariff on EU imports, avoiding the steeper 30% tariffs scheduled for August 1. These developments have relieved market anxiety over global trade tensions, supporting oil prices.

Crude Inventory Decline Fuels WTI Rally

The US Energy Information Administration (EIA) reported that crude oil inventories fell by 3.169 million barrels for the week ending July 18, exceeding analyst expectations of a 1.4 million-barrel decline. The previous week's drop was 3.859 million barrels. A drawdown in inventories is typically seen as a sign of increased demand or tightening supply, both of which are bullish for oil prices.

What to Watch on Tredu

• Oil Price Live Chart
• Weekly EIA Inventory Report
• Impact of Trade Deals on Commodities