The Oil price oscillates in a tight range, awaiting the release of US EIA Crude Oil Stocks Change data.
Trade deal between the US and Japan fails to strengthen the Oil price.
US-EU trade tensions continue to cap the Oil price’s upside.
West Texas Intermediate (WTI), futures on NYMEX, trades in a tight range around $65.30 during the European trading session on Wednesday. The Oil price consolidates as investors await the weekly crude Oil inventory data, reported by the United States’ (US) Energy Information Administration (EIA).
According to estimates, the stockpiles of crude Oil declined by 1.4 million barrels. Lower Oil inventory often signifies higher consumption, a scenario that is favorable for the Oil price.
Meanwhile, the Oil price fails to capitalize on the confirmation of a bilateral deal between the United States (US) and Japan. On Tuesday, US President Donald Trump stated through a post on Truth.Social that Washington has reached a trade deal with Tokyo.
“Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things. Japan will pay Reciprocal Tariffs to the United States of 15%,” Trump wrote.
Trade tensions between the United States (US) and the European Union (EU) continue to keep a lid on the Oil price. US-EU trade worries have escalated as the trading bloc has prepared higher countermeasures against Trump’s tariffs, which would become effective from August 1 if both economies fail to reach a deal.
The outlook of the Oil demand would weaken if the US and the EU fail to close a deal, given the size of business between both economies.
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