TOKYO — Oil prices rose on Thursday, buoyed by optimism over US trade negotiations that would ease pressure on the global economy and a sharper-than-expected decline in US crude inventories.
Brent crude futures gained 21 cents, or 0.3 percent, to $68.72 a barrel by 0335 GMT. US West Texas Intermediate crude futures climbed 22 cents, or 0.3 percent, to $65.47 per barrel.
Both benchmarks were little changed on Wednesday as markets monitored developments in US-European Union trade talks, following President Donald Trump’s tariff deal with Japan. The agreement lowers duties on auto imports and spares Tokyo from new levies in exchange for a $550 billion package of US-bound investment and loans.
“Buying was driven by optimism that progress in tariff negotiations with the US would help avoid a worst-case scenario,” said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities.
“Still, uncertainty over US-China trade talks and peace negotiations between Ukraine and Russia is limiting further gains,” he added, predicting WTI will likely remain range-bound between $60 and $70.
Two European diplomats said on Wednesday that the EU and the US are moving toward a trade deal that could include a 15 percent US baseline tariff on EU goods and possible exemptions, potentially paving the way for another major trade agreement following the Japan deal.
On the supply side, US Energy Information Administration data showed US crude inventories fell last week by 3.2 million barrels to 419 million barrels, exceeding analysts’ expectations in a Reuters poll for a 1.6 million-barrel draw.
