At 11:18 GMT, Light Crude Oil Futures are trading $65.89, up $0.64 or +0.98%.
Crude Inventories Drop Sharply, Supporting Market Tone
Wednesday’s EIA report showed a 3.2 million barrel decline in U.S. crude inventories, more than double the 1.6 million barrel draw forecast by analysts. The surprise draw helped stabilize market sentiment, keeping bulls in control.
Analysts at Rystad and Nissan Securities noted that while the draw is constructive, traders are watching whether this trend sustains through the peak demand season. Refining margins could face pressure if demand weakens or inventories begin to build.
U.S.-EU Trade Talks Offer Additional Tailwind
Reports that the U.S. and EU are progressing toward a trade deal—possibly including a 15% baseline tariff with exemptions—added to market optimism. This follows a similar agreement reached with Japan, bolstering hopes for stronger global trade flows and energy demand.
While no firm deal has been finalized, sentiment is leaning positive, with traders viewing any resolution as a net gain for oil demand projections.
Geopolitical Disruptions Offer Limited but Temporary Support
Supply disruptions provided temporary price lifts earlier in the week. Exports of Azeri crude from Turkey’s Ceyhan port were suspended due to organic chloride contamination, although partial loadings have resumed. Russia also briefly halted crude loading operations at its main Black Sea terminals, but those delays have since been resolved.
