Oil prices climbed in Asian trading on Thursday, breaking a three-day downward trend after data from the U.S. showed a larger-than-expected drop in crude stockpiles, signaling tightening supply. However, investors remained cautious ahead of potential new U.S. tariff announcements.
By 21:35 ET (01:35 GMT), September Brent crude futures had risen 0.6% to $68.94 per barrel, while West Texas Intermediate (WTI) futures gained 0.8% to $66.92 per barrel.
Earlier this week, oil had declined by as much as 4% over three sessions after U.S. President Donald Trump paused immediate action against Russia, instead granting a 50-day deadline to end the conflict in Ukraine.
US crude inventories fall more than expected – EIA
According to the U.S. Energy Information Administration (EIA) report released Wednesday, crude oil stocks dropped by 3.9 million barrels to 422.2 million barrels for the week ending July 11, 2025. This drawdown exceeded analysts’ forecasts of a 1.8 million-barrel decline, reflecting tightening market conditions.
Refinery utilization remained robust, with roughly 93.9% of available refining capacity in operation. Despite the decline in crude stocks, gasoline inventories increased by 3.4 million barrels, and distillate fuel supplies rose by 4.2 million barrels.
Strong refinery throughput combined with increased imports helped tighten the domestic crude supply balance, supporting prices.
Investors weigh tariff risks amid trade tensions
President Trump announced on Wednesday plans to notify over 150 countries of new tariff rates as part of his ongoing trade policy. He told White House reporters that all affected nations would face the same tariffs, noting most are smaller economies with limited trade volume.
This follows Trump’s recent threat to impose a 30% tariff on imports from the European Union starting August 1, a move European officials deem unacceptable and potentially disruptive to trade between two of the world’s largest markets.
Reports indicate the European Commission is preparing to retaliate with tariffs on $84.1 billion (€72 billion) worth of U.S. goods if trade negotiations with Washington fail.
While some signs of easing in U.S.-China trade tensions emerged, investors remain cautious, concerned that tariff escalations could dampen oil demand and broader economic growth.
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