Oil prices climbed on Thursday as optimism over U.S. trade negotiations and a significant decline in crude inventories boosted market sentiment. Brent crude futures rose 0.4% to $68.75 per barrel, while U.S. West Texas Intermediate (WTI) gained 0.4% to $65.50.
The increase follows President Donald Trump’s tariff agreement with Japan, which lowers auto import duties and includes a $550 billion U.S.-bound investment package. Analysts say progress in U.S.-EU trade talks, which may include a 15% baseline tariff with potential exemptions, is also improving risk appetite. However, ongoing U.S.-China trade tensions and unresolved Russia-Ukraine peace negotiations continue to cap further gains.
U.S. Energy Information Administration data showed crude inventories fell by 3.2 million barrels to 419 million last week, surpassing expectations of a 1.6 million-barrel draw. This stronger-than-expected decline eased supply concerns, supporting price stability.
Geopolitical risks remain in focus, with Russia and Ukraine engaging in talks over prisoner swaps but failing to bridge differences on a ceasefire. Additionally, foreign oil tankers were temporarily barred from loading at Russia’s Black Sea ports due to new regulations, disrupting exports from Kazakhstan via a consortium partly owned by U.S. energy companies.
The U.S. energy secretary indicated Washington may consider sanctioning Russian oil to pressure Moscow, while the European Union recently approved its 18th sanctions package, including a reduced price cap on Russian crude.
Analysts forecast WTI prices will remain range-bound between $60 and $70 in the near term, as traders weigh supply-side factors and geopolitical developments impacting global energy markets.


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