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• WTI price edges higher to near $65.30 in Thursday’s early Asian session.
• The US-Japan trade deal boosts market optimism, supporting the WTI price. 
• Crude inventories in the United States declined by 3.169 million barrels last week, noted EIA. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $65.30 during the early Asian trading hours on Thursday. The WTI posts modest gains as a new US trade deal boosts market optimism. 

The uptick of black gold is bolstered by a trade deal that US President Donald Trump announced with Japan and the Philippines. On Wednesday, the European Union (EU) officials said they were heading towards a trade deal with the US that would result in a broad 15% tariff on EU goods imported into the US, avoiding a higher 30% duties slated to be implemented from August 1.

US crude oil inventories fell last week. The US Energy Information Administration (EIA) weekly crude oil stock report showed crude oil stockpiles in the US for the week ending July 18 declined by 3.169 million barrels, compared to a fall of 3.859 million barrels in the previous week. The market consensus estimated that stocks would decrease by 1.4 million barrels. A fall in U.S. crude stockpiles generally lifts the WTI price, as it reflects stronger demand or tighter supply.

US Treasury Secretary Scott Bessent stated that he will meet with Chinese officials in Stockholm next week to discuss extending the trade truce. Any signs of renewed trade tensions between the world’s two largest economies could spark fresh concern over global fuel demand and weigh on the WTI price. 

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