Oil advanced alongside equity markets after a US trade court blocked President Donald Trump's global tariffs, deeming them illegal.
Brent climbed toward $66 a barrel after rising 1.3% in the previous session, while West Texas Intermediate was near $63. Trump's sweeping tariffs and retaliatory measures by targeted countries have rattled global markets and raised concerns over an economic slowdown.
The Trump administration will appeal the ruling, which applies to the vast range of global levies, including elevated rates on China.
Oil has trended lower since mid-January on concerns around the fallout from Trump's tariffs, with the revival of idled production by OPEC+ adding to bearish headwinds. Key members of the group meet on Saturday to decide output policy for July, and there are expectations for another large supply hike.
“The collective wisdom in the market has clearly taken the headlines as a near-term positive for risk,” said Chris Weston, the head of research at Pepperstone Group Ltd. in Melbourne. However, traders still “remain cognizant of the supply dynamic underway with the OPEC+,” he added.
US crude stockpiles, meanwhile, dropped by 4.2 million barrels last week, the American Petroleum Institute reported, according to a document seen by Bloomberg. Official data is due later Thursday.
Prices:
Brent for July settlement was 1.6% higher at $65.95 a barrel as of 1:59 p.m. in Singapore
WTI for July delivery rose 1.7% to $62.92 a barrel.
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