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Oil prices rose more than 1% on Thursday, buoyed by optimism surrounding U.S. trade negotiations and a larger-than-expected decline in U.S. crude inventories.<\/strong><\/p>\n\n\n\n As of 0934 GMT, Brent crude futures<\/strong> gained 79 cents<\/strong>, or 1.15%<\/strong>, reaching $69.30<\/strong> per barrel, while U.S. West Texas Intermediate (WTI) crude futures<\/strong> climbed 83 cents<\/strong>, or 1.3%<\/strong>, to $66.08<\/strong> per barrel.<\/p>\n\n\n\n Despite the bullish data, oil prices remain constrained by broader geopolitical risks<\/strong>. According to Hiroyuki Kikukawa<\/strong>, chief strategist at Nissan Securities<\/strong>, uncertainty over U.S.-China trade talks<\/strong> and peace negotiations between Ukraine and Russia<\/strong> are limiting further gains. Kikukawa predicts that WTI crude<\/strong> will likely remain range-bound between $60 and $70<\/strong> per barrel in the short term.<\/p>\n\n\n\n Looking ahead, demand indicators<\/strong> will play a crucial role in determining the direction of oil prices. As the market enters the peak season<\/strong>, any changes in demand could significantly impact refining margins<\/strong>, which in turn would influence price movements. Investors will be watching closely for signs of either upside or downside in demand as the global market navigates the ongoing geopolitical challenges.<\/p>\n\n\n\n In summary, oil prices gained support from positive trade news and a significant inventory drawdown in the U.S., although geopolitical tensions and uncertainty about global demand continue to limit further price advances. The market’s focus now shifts to developments in the U.S.-China trade talks<\/strong>, the Russia-Ukraine conflict<\/strong>, and refining margins as the peak demand season unfolds.<\/p>\n","protected":false},"excerpt":{"rendered":" Oil prices rose more than 1% on Thursday, buoyed by optimism surrounding U.S. trade negotiations and a larger-than-expected decline in U.S. crude inventories. As of 0934 GMT, Brent crude futures gained 79 cents, or 1.15%, reaching $69.30 per barrel, while U.S. West Texas Intermediate (WTI) crude futures climbed 83 cents, or 1.3%, to $66.08 per …<\/p>\n","protected":false},"author":9,"featured_media":95641,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,6827,49,36],"tags":[],"class_list":["post-116977","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-daily-economic-reports","category-economic-reports","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/116977","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=116977"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/116977\/revisions"}],"predecessor-version":[{"id":116978,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/116977\/revisions\/116978"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/95641"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=116977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=116977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=116977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Factors Supporting the Rise in Oil Prices<\/strong><\/h3>\n\n\n\n
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Positive sentiment emerged from news that the EU<\/strong> and U.S.<\/strong> are reportedly moving toward a trade deal, which could include a 15% U.S. baseline tariff on EU imports<\/strong> with possible exemptions. This trade optimism is expected to ease global economic pressure, paving the way for further agreements and helping bolster oil prices.<\/li>\n\n\n\n
Data from the U.S. Energy Information Administration (EIA)<\/strong> revealed that U.S. crude inventories<\/strong> fell by 3.2 million barrels<\/strong> to 419 million barrels<\/strong> last week, exceeding analysts’ expectations of a 1.6 million-barrel draw<\/strong>. This unexpected decline in U.S. crude stocks signals tightening supply, providing additional support to oil prices.<\/li>\n<\/ul>\n\n\n\nSupply-Side Factors:<\/strong><\/h3>\n\n\n\n
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Supply concerns were heightened by issues in loading CPC exports from Kazakhstan<\/strong> due to Russian administrative interference<\/strong>, along with reports of contamination<\/strong> affecting Azeri crude loadings from Ceyhan<\/strong> in Turkey. These disruptions added upward pressure on prices, although their long-term impact remains uncertain. However, Kazakhstan\u2019s energy ministry<\/strong> clarified that the country had not halted oil loadings via Russian sea ports, tempering some of the market’s supply concerns.<\/li>\n<\/ul>\n\n\n\nMarket Outlook and Challenges<\/strong><\/h3>\n\n\n\n
Demand and Refining Margins<\/strong><\/h3>\n\n\n\n
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