Oil Rises on Progress in Trade Talks, Strong US Economic Data
Oil rose following a string of losses as progress on international trade talks and strong US jobs data eased concerns that demand will deteriorate in the near term.
West Texas Intermediate crude gained more than 1% to top $66 a barrel after four sessions of declines. The European Union and the US are progressing toward a deal that would set a 15% tariff for most imports, similar to the one President Donald Trump struck with Japan. That would be a smaller rate than investors feared, with the US president earlier threatening a 30% tariff on most goods if an agreement wasn’t reached by Aug. 1.
Crude also followed equities higher after applications for US unemployment benefits fell for the sixth straight week, damping concerns that energy demand may wane.
Oil prices have been in a holding pattern this month, with tightness in global diesel markets offset by expectations of a deluge of crude supply from OPEC+ as the group raises production quotas. While diesel inventories in the US are starting to build back up, they’re still at the lowest seasonal level since 1996.
“Oil prices have been consolidating in a tight range of late, and volatility indicators suggest market participants seem increasingly sanguine about the oil market outlook,” said Amarpreet Singh, an analyst at Barclays Plc.
The relative calm comes after a period of choppy trading that Norwegian oil giant Equinor ASA said Wednesday had hurt its energy trading business. France’s TotalEnergies SE painted a dour outlook Thursday, saying the oil market is facing “abundant supply that is fueled by OPEC+’s decision to unwind some voluntary production cuts.”
WTI for September delivery rose 1.6% to $66.28 a barrel at 10:29 a.m. in New York. Brent for September settlement gained 1.3% to $69.43 a barrel.
Source : Bloomberg
