After a Series of Declines.. Stability in Oil Prices

SadaNews - Oil prices stabilized after a series of declines, as investors await any progress in U.S. trade talks and monitor low inventory levels.

Brent crude traded below $69 a barrel after four consecutive sessions of decline, while West Texas Intermediate remained above $65.

U.S. President Donald Trump announced that he would impose tariffs ranging from 15% to 50% before the deadline on August 1. A 15% rate was set for Japan on Wednesday, while the European Union is making progress towards a similar agreement.

Vishnu Varathan, head of Asia macroeconomics at Mizuho Bank, stated: "Oil prices may see a slight recovery based on a less pessimistic assumption regarding demand, as the market expresses relief in avoiding the worst-case scenarios related to tariffs," but he warned that this "trade relief" may not last long given expectations of continued negative impact on global growth.

Lower U.S. Inventories

Data showed that U.S. crude inventories fell by 3.2 million barrels last week nationwide, while inventories at the Cushing storage hub, the delivery point for West Texas crude contracts, rose for the third consecutive week.

As for diesel inventories, despite recording an increase, they remain at their lowest seasonal level since 1996.

Oil markets are in a state of anticipation during this month, as the tight supply in the global diesel market during the summer months is balanced against expectations of increased supply from the OPEC+ alliance with lifted production quotas.

Sanctions are also under scrutiny, with the potential impact of new EU restrictions on Russia affecting importers such as India, while U.S. Treasury Secretary Scott Pison reiterated that China’s purchases of Russian and Iranian oil may be part of trade negotiations next week.