Oil Gains as Trade Talks Advance

WTI crude oil futures rose above $65 per barrel on Thursday, halting a four-day decline, as markets focused on trade developments. The US and the EU are moving toward a deal that would impose a 15% tariff on most EU goods entering the US, following a similar agreement with Japan. Optimism over a potential US-EU trade deal has improved risk sentiment, helping alleviate worries that extended tariff tensions might dampen global oil demand. EIA data also showed US crude inventories declined by 3.2 million barrels last week, surpassing expectations and pointing to strong demand. Gasoline stockpiles also dropped by 1.7 million barrels, while distillate inventories rose by 2.9 million barrels. Meanwhile, traders are also watching for US Treasury Secretary Scott Bessent’s upcoming meeting with Chinese officials in Stockholm next week, where discussions will focus on extending the trade truce and may include China’s purchases of sanctioned oil from Russia and Iran.