Oil Prices Gain With Focus On Trade Talk Progress, US Crude Stockpiles
Brent for August settlement was 0.3% higher to trade at $65.80 a barrel.
Oil gained on signs of progress in trade talks between the US and EU and an industry group report of a major drawdown in American crude inventories.
West Texas Intermediate advanced toward $64 a barrel after a US trade envoy said that trade negotiations with the European Union were “advancing quickly.”
In the US, the American Petroleum Institute reported that crude inventories dropped 3.28 million barrels last week. That would be the biggest drawdown since March if confirmed by official data later on Wednesday.
Limiting the rally, one Canadian operator restarted a site that had been shut down by fires. Blazes in Alberta had halted about 7% of Canada’s oil output at one point.
Prices eased earlier after Ukrainian President Volodymyr Zelenskiy said he’s ready to meet with Russia’s Vladimir Putin even without a ceasefire monitoring mechanism. The slide was compounded by US data showing that hiring decelerated to the slowest pace in two years.
Oil rose at the start of the week after a decision by OPEC+ to increase production in July was in line with expectations, easing concerns over a bigger hike. However, prices are still down about 11% this year on fears around a looming supply glut, while traders continue to monitor US trade tariffs as President Donald Trump said his Chinese counterpart is “extremely hard” to make a deal with.
Saudi Arabia led increases in OPEC oil production last month as the group began its series of accelerated supply additions, according to a Bloomberg survey. Nevertheless, the hike fell short of the full amount the kingdom could have added under the agreements.
The OECD, meanwhile, cut its outlook for global economic growth on Tuesday, with the US among the hardest hit. Trump is pushing ahead with his tariffs, signing a directive that doubles rates on steel and aluminum.
Prices:
WTI for July delivery rose 0.6% to trade at $63.77 a barrel at 10:15 a.m. in New York.
Brent for August settlement was 0.3% higher to trade at $65.80 a barrel.
