Oil Prices Halt Falling, Supported by US-Japan Trade Deal
Oil prices rose slightly in Asian trading on Wednesday (July 23rd) after weakening for three consecutive sessions. Market sentiment improved following US President Donald Trump's statement that the US and Japan had reached a trade deal that includes a 15% tariff on Japanese imports and $550 billion in investment in the US. Brent crude rose 0.31% to $68.80 per barrel, while WTI rose 0.26% to $65.48.
While the deal with Japan provided short-term support, the market remained cautious as hopes for a breakthrough in trade negotiations between the US, the European Union, and China faded. Tensions ahead of the EU-China summit have kept the global demand outlook gloomy, limiting price gains.
On the supply side, a report by the American Petroleum Institute showed that US crude and gasoline inventories fell last week, while distillate stocks rose by more than 3 million barrels. Analysts say the decline in oil stocks could support prices in the short term, although the global market is expected to experience a surplus by the end of the year.
Another positive signal came from the US, where the Energy Secretary stated that he would consider additional sanctions on Russian oil to pressure Moscow over its invasion of Ukraine. However, the effectiveness of these sanctions remains questionable due to the lack of US support for the new EU sanctions package approved last week.
Source: Newsmaker.id
