WTI crude oil futures rose toward $66 per barrel on Wednesday, following a three-day decline, supported by progress in US trade talks that improved sentiment toward the demand outlook. Recent announcements of trade deals involving major economies have boosted hopes for broader agreements with key US partners—including primary crude consumers—ahead of the August 1 deadline, easing some concerns that prolonged disputes could weigh on energy demand. In another bullish signal for oil, the US energy secretary said the state may consider sanctioning Russian oil to help end the war in Ukraine.
This followed the EU’s approval of its 18th sanctions package last week, which included a lower price cap on Russian crude. Additional support came from US crude inventories, which fell by 0.6 million barrels last week, breaking a three-week streak of builds and suggesting stronger demand. However, distillate stockpiles increased. Traders now await official inventory data due later today.
