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Investing.com--Oil prices rose Thursday, helped by a sharp decline in U.S. crude stockpiles as well as growing optimism over more trade deals ahead of President Donald Trump’s deadline.
At 08:50 ET (12:50 GMT), Brent Oil Futures expiring in September rose 0.9% to $69.11 per barrel and West Texas Intermediate (WTI) crude futures gained 1.1% to $65.96 per barrel.
Both contracts have declined for the last four sessions as Trump’s Aug. 1 tariff deadline nears, raising fears of reduced global activity resulting in weaker energy demand.
U.S. crude inventories declined last week – EIA
U.S. crude oil inventories fell sharply last week as refiners ramped up activity and exports remained strong, according to data from the Energy Information Administration (EIA).
Crude stockpiles declined by 3.17 million barrels in the week to July 19, EIA data showed, far outpacing analysts’ expectations of a 1.6 million-barrel draw.
With commercial stockpiles now around 9% below the five‑year seasonal average at approximately 419 million barrels, the sharp decline signals a tightening supply balance in the market.
Gasoline stocks also fell by 1.7 million barrels, compared with forecasts for a 900,000-barrel decline, while distillate inventories rose by 2.9 million barrels, reflecting seasonal restocking.
EU/U.S. trade progress in focus
The EU and United States are closing in on a trade deal that would impose 15% tariffs on European imports, the Financial Times reported late Wednesday.
Both the EU and US would waive tariffs on some products, including aircraft, spirits and medical devices, the report said, citing people familiar with the matter.
This follows the trade deal between Washington and Tokyo announced earlier in the week, the most significant of a string of trade deals negotiated by the White House ahead of a looming August 1 deadline.
This has bolstered sentiment that other nations could also reach favorable agreements before the deadline, removing the risk of a global trade war which would hit economic activity and thus the demand for crude.
Ayushman Ojha contributed to this article