Oil Prices Stabilize after US-Japan Trade Deal
Improved global trade sentiment contributes to stabilization in oil prices following recent fluctuations.
Oil prices were little changed on Wednesday after falling for three consecutive sessions as a US tariff deal with Japan improved global trade sentiment.
Brent crude futures were down 2 cents, or 0.03 percent, at $68.57 a barrel as of 8:54 a.m. Saudi time.
US West Texas Intermediate crude futures were also down 2 cents, at $65.29 per barrel.
Both benchmarks lost about 1 percent in the previous session after the EU said it was considering countermeasures against US tariffs, as hope faded for a deal ahead of an August 1 deadline.
President Donald Trump stated that the US and Japan had struck a trade deal that includes a 15 percent tariff on US imports from Japan.
He also mentioned that Japan had agreed to invest $550 billion in the US.
Meanwhile, industry expectations are low for Thursday's EU-China summit, which will test the bloc's unity and resolve amid mounting trade tensions with both Beijing and Washington.
The EU is considering countermeasures against US tariffs, and it remains uncertain whether a deal can be reached before an August 1 deadline.
China’s commerce minister and the European Union’s trade chief had a "candid and in-depth" discussion on economic and trade cooperation as well as other issues that both sides face ahead of the summit.
Additionally, US crude and gasoline stocks fell last week, market sources said, citing American Petroleum Institute figures on Tuesday.
Distillate stocks rose by 3.48 million barrels, which will offer some relief to the middle distillate market, which has been looking increasingly tight.
ING analysts noted that low crude inventories will provide support to prices even as a large surplus is expected to hit the market later in the year.
Furthermore, the US energy secretary stated on Tuesday that the US would consider sanctioning Russian oil to end the war in Ukraine.
The EU agreed its 18th sanctions package against Russia on Friday, lowering the price cap for Russian crude.
However, analysts argue that a lack of US participation will hinder the effectiveness of this package.
Brent crude futures were down 2 cents, or 0.03 percent, at $68.57 a barrel as of 8:54 a.m. Saudi time.
US West Texas Intermediate crude futures were also down 2 cents, at $65.29 per barrel.
Both benchmarks lost about 1 percent in the previous session after the EU said it was considering countermeasures against US tariffs, as hope faded for a deal ahead of an August 1 deadline.
President Donald Trump stated that the US and Japan had struck a trade deal that includes a 15 percent tariff on US imports from Japan.
He also mentioned that Japan had agreed to invest $550 billion in the US.
Meanwhile, industry expectations are low for Thursday's EU-China summit, which will test the bloc's unity and resolve amid mounting trade tensions with both Beijing and Washington.
The EU is considering countermeasures against US tariffs, and it remains uncertain whether a deal can be reached before an August 1 deadline.
China’s commerce minister and the European Union’s trade chief had a "candid and in-depth" discussion on economic and trade cooperation as well as other issues that both sides face ahead of the summit.
Additionally, US crude and gasoline stocks fell last week, market sources said, citing American Petroleum Institute figures on Tuesday.
Distillate stocks rose by 3.48 million barrels, which will offer some relief to the middle distillate market, which has been looking increasingly tight.
ING analysts noted that low crude inventories will provide support to prices even as a large surplus is expected to hit the market later in the year.
Furthermore, the US energy secretary stated on Tuesday that the US would consider sanctioning Russian oil to end the war in Ukraine.
The EU agreed its 18th sanctions package against Russia on Friday, lowering the price cap for Russian crude.
However, analysts argue that a lack of US participation will hinder the effectiveness of this package.
