Oil prices edge higher as U.S. crude stockpiles drop; tight market

Investing.com-- Oil prices edged higher Thursday, snapping a three-day losing streak after U.S. data showed a sharper-than-expected drop in crude inventories, highlighting tight supply, while investors remained cautious ahead of potential new U.S. tariff announcements.

At 07:45 ET (11:45 GMT), Brent Oil Futures expiring in September rose 0.3% to $68.69 per barrel, while West Texas Intermediate (WTI) crude futures jumped 0.6% to $66.76 per barrel.

Oil slipped as much as 4% in the first three days of this week as U.S. President Donald Trump stopped short of immediate action against Russia, and instead gave it a 50-day window to end the war in Ukraine.

Crude prices had jumped sharply at the end of last week amid speculation that Trump was going to sanction the Russian oil industry further given his frustration at the lack of progress towards a ceasefire.  

US crude stocks fell more than expected last week- EIA

U.S. crude oil inventories fell by 3.9 million barrels to 422.2 million barrels for the week ending July 11, 2025, the U.S. Energy Information Administration (EIA) reported on Wednesday. 

This drawdown was larger than analysts’ expectations of a 1.8 million-barrel decrease and indicates tightening market conditions.

Refinery utilization rates remained high, with approximately 93.9% of operable refining capacity in use. 

Despite the crude draw, gasoline inventories rose by 3.4 million barrels, and distillate fuel inventories increased by 4.2 million barrels.

Strong refinery throughput and rising imports contributed to a tighter domestic crude supply balance, supporting oil prices.

Investors assess tariff moves to gauge demand outlook

President Trump said on Wednesday that he will notify over 150 countries of new tariff rates as part of his ongoing trade agenda, prompting global efforts to avoid steeper import duties.

He told reporters at the White House that all countries in the group would face the same tariffs, adding that they are mostly small nations with limited trade volume.

This comes after Trump threatened a 30% tariff on imports from the European Union from August 1, a level European officials say is unacceptable and would end normal trade between two of the world’s largest markets.

The European Commission was reportedly preparing to target €72 billion ($84.1 billion) worth of U.S. goods for possible tariffs if talks with Washington to reach a trade agreement fail.

Despite some signs of easing U.S.-China trade tensions, investors stayed cautious, concerned that Trump’s tariff moves could dampen oil demand and broader economic growth.

Ayushman Ojha contributed to this article