FX.co ★ Oil Gains as Trade Talks Advance

On Thursday, West Texas Intermediate (WTI) crude oil futures climbed above $65 per barrel, interrupting a four-day downward trend as market participants turned their attention to trade developments. The United States and the European Union are advancing towards a trade agreement that would levy a 15% tariff on most EU goods entering the US, following a similar accord reached with Japan. This potential US-EU deal has bolstered risk sentiment, easing concerns that prolonged tariff conflicts could suppress global oil demand. Additionally, data from the Energy Information Administration (EIA) revealed a 3.2 million-barrel decline in US crude inventories last week, exceeding expectations and indicating robust demand. Gasoline stocks also fell by 1.7 million barrels, whereas distillate inventories recorded a rise by 2.9 million barrels. Simultaneously, traders are closely monitoring the forthcoming meeting between US Treasury Secretary Scott Bessent and Chinese officials in Stockholm next week, where discussions are expected to center on extending the trade truce and may touch upon China's procurement of sanctioned oil from Russia and Iran.