Crude oil prices rise on optimism over EU trade deal, bigger-than-expected inventory draw
2025-07-24 18:35:23
Oil prices rose on Thursday (July 24), boosted by two factors: optimism about US trade negotiations eased pressure on the global growth outlook, and a larger-than-expected drop in crude oil inventories.
The European Union and the United States are moving toward a trade deal that could include a 15 percent base tariff on EU goods with possible exemptions, two European diplomats said, following a deal Trump has already reached with Japan.
EU member states are due to vote on Thursday on 93 billion euros of retaliatory tariffs on U.S. goods, with an overwhelming majority backing the use of anti-coercion tools if no deal is reached, they added.
On the supply side, data from the U.S. Energy Information Administration (EIA) showed that U.S. crude oil inventories fell by 3.2 million barrels to 419 million barrels last week, exceeding analysts' expectations for a 1.6 million barrel drop due to a decline in both crude oil production and imports.
Russia and Ukraine held peace talks in Istanbul on Wednesday to discuss further prisoner exchanges, but the two sides remained far apart over the terms of a ceasefire and a possible meeting between their leaders.
The United States is considering sanctions on Russian oil to end the conflict between Russia and Ukraine. Meanwhile, the European Union passed its 18th round of sanctions against Russia on Friday, lowering the price ceiling for Russian crude oil.
Oil traders will be closely watching Thursday's meeting between EU and Chinese leaders, their first face-to-face summit since 2023. In addition, U.S. Treasury Secretary Jeff Besant said he will meet with Chinese officials in Stockholm next week to discuss extending the trade truce. Any signs of tensions could raise further concerns about global fuel demand and have an impact on crude oil.
(WTI crude oil daily chart source: Yihuitong)
Recently, West Texas Intermediate (WTI) crude oil has been hovering around its 50-day moving average, and the easing of trade tensions has been largely reflected in the price. In the next trading session, its price may fall slightly to around $64.7.
At 18:29 Beijing time, WTI crude oil was quoted at US$66.04 per barrel, up 1.21%.
The European Union and the United States are moving toward a trade deal that could include a 15 percent base tariff on EU goods with possible exemptions, two European diplomats said, following a deal Trump has already reached with Japan.
EU member states are due to vote on Thursday on 93 billion euros of retaliatory tariffs on U.S. goods, with an overwhelming majority backing the use of anti-coercion tools if no deal is reached, they added.
On the supply side, data from the U.S. Energy Information Administration (EIA) showed that U.S. crude oil inventories fell by 3.2 million barrels to 419 million barrels last week, exceeding analysts' expectations for a 1.6 million barrel drop due to a decline in both crude oil production and imports.
Russia and Ukraine held peace talks in Istanbul on Wednesday to discuss further prisoner exchanges, but the two sides remained far apart over the terms of a ceasefire and a possible meeting between their leaders.
The United States is considering sanctions on Russian oil to end the conflict between Russia and Ukraine. Meanwhile, the European Union passed its 18th round of sanctions against Russia on Friday, lowering the price ceiling for Russian crude oil.
Oil traders will be closely watching Thursday's meeting between EU and Chinese leaders, their first face-to-face summit since 2023. In addition, U.S. Treasury Secretary Jeff Besant said he will meet with Chinese officials in Stockholm next week to discuss extending the trade truce. Any signs of tensions could raise further concerns about global fuel demand and have an impact on crude oil.
(WTI crude oil daily chart source: Yihuitong)
Recently, West Texas Intermediate (WTI) crude oil has been hovering around its 50-day moving average, and the easing of trade tensions has been largely reflected in the price. In the next trading session, its price may fall slightly to around $64.7.
At 18:29 Beijing time, WTI crude oil was quoted at US$66.04 per barrel, up 1.21%.
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