Oil prices are rising again. This time, it’s because of two big reasons: better news from US trade talks and a sharp fall in US crude inventories. Both signals gave energy markets a much-needed boost.
On Thursday morning, Brent crude futures went up by 54 cents to $69.05 per barrel. At the same time, WTI crude also rose 58 cents to reach $65.83. It might not sound like a lot, but in oil markets, these moves are strong.
US-EU Trade Deal Talks Bring Fresh Hope
Two European diplomats said that the US and EU are close to a trade deal. It could include a 15% US base tariff on EU goods but with some exceptions. This comes just after the US signed a trade pact with Japan.
This news brought new energy to the oil market. Investors feel that if these deals go through, global trade may finally stabilize.
“People are buying oil again because they believe the worst might be over,” said Hiroyuki Kikukawa from Nissan Securities.
Trouble in Oil Supply Adds Fuel to the Fire
But there’s more. Supply issues also played a role in the price rise.
There are delays in loading oil from Kazakhstan through the Black Sea. Russia is reportedly causing administrative troubles. Also, Azeri crude from Ceyhan in Turkey is facing contamination problems, according to PVM analyst John Evans.
These issues made oil a bit more expensive, since supply is now under pressure.
Still, Kazakhstan’s energy ministry said exports have not stopped completely, as reported by Interfax.
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US Crude Inventories Fall More Than Expected
Then came the surprise from the US. The Energy Information Administration (EIA) reported that US crude stockpiles dropped by 3.2 million barrels last week. That’s double what experts expected.
Falling crude inventories usually push prices up because they show more oil is being used.
But things are not all perfect.
Risks Still Hold Prices Back
Traders are still careful. Uncertainty around US-China trade talks and Russia-Ukraine peace talks is stopping oil from rising too fast.
Even Kikukawa warned that WTI might stay between $60 and $70, unless things change quickly.
The Russia-Ukraine talks in Istanbul on Wednesday didn’t lead to a major breakthrough, though both sides discussed prisoner swaps.
Oil prices gain again as the world sees better trade signals and lower US oil supplies. But peace talks and global risks are still keeping things shaky.
The energy world is watching closely. One big deal—or one big fight—could change the direction again.
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