TOKYO: Oil prices rose around 1 percent on Thursday, buoyed by optimism over US trade negotiations that would ease pressure on the global economy and a sharper-than-expected decline in US crude inventories.
Brent crude futures gained 64 cents, or 0.9 percent, to $69.15 a barrel by 8:30 a.m. Saudi time. US West Texas Intermediate crude futures climbed 68 cents, or 1 percent, to $65.93 per barrel.
Both benchmarks were little changed on Wednesday as markets monitored developments in US-European Union trade talks, following President Donald Trump’s tariff deal with Japan. The agreement lowers duties on auto imports and spares Tokyo from new levies in exchange for a $550 billion package of US-bound investment and loans.
“Buying was driven by optimism that progress in tariff negotiations with the US would help avoid a worst-case scenario,” said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities.
“Still, uncertainty over US-China trade talks and peace negotiations between Ukraine and Russia is limiting further gains,” he said, predicting WTI would likely remain range-bound between $60 and $70.
