Oil prices rise as trade talks progress

Oil prices rose on Thursday, West Texas Intermediate crude exceeded the level of 65 dollars per barrel, ending four consecutive days of decline, supported by market optimism about progress in trade talks between the United States and the European Union, in addition to a sudden drop in US crude inventories.

Trade agreements boost oil demand prospects

The markets are witnessing an improvement in the global trade landscape, as the United States and the European Union are moving towards an agreement imposing 15% tariffs on most EU exports to the US market, following a similar agreement with Japan.

This development contributed to strengthening investor confidence, which helped alleviate fears of a decline in global oil demand in the event of continued trade tensions.

Falling US stocks support prices

Data from the US Energy Information Administration (EIA) reinforced the rise in prices, showing an unexpected decrease in crude inventories by 3.2 million barrels last week, exceeding analysts expectations, indicating strong domestic demand.

Gasoline inventories also decreased by 1.7 million barrels, while stocks of distillates (such as diesel and jet fuel) increased by 2.9 million barrels.

Markets are waiting for new US-China talks

Traders are also looking forward with interest to the scheduled meeting between the US Treasury Secretary and Chinese officials in Stockholm next week, where the talks are expected to focus on extending the trade truce between the two countries, as well as discussing other issues such as China's purchases of sanctioned oil from Iran and Russia.

Despite the previous pressure on oil prices due to fears of slowing global growth, positive developments in trade negotiations, along with a decline in US inventories, may continue to support the recovery in prices over the coming period.

However, markets remain sensitive to any negative surprises in trade talks or changes in global supply levels.