WTI price edges higher to near $65.95 in Friday’s early Asian session.
Optimism surrounding fresh US trade deals and US crude draws support 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 $65.95 during the early Asian trading hours on Friday. The WTI extends the rally due to optimism over potential United States (US) and European Union (EU) trade progress and a larger-than-expected U.S. crude inventory draw.
Progress in tariff negotiations between the US and the EU eases pressure on the global economy and underpins the WTI price. Both trade partners are reportedly working on a deal that would impose a 15% tariff on most EU goods to the US, following a similar US-Japan agreement, and the prospect of a successful trade deal has sparked a risk-on mood and boosted investor sentiment.
Furthermore, US crude oil inventories fell last week, suggesting a robust demand in the world's largest crude consumer, supporting the black gold. 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.
Investors will closely monitor the developments surrounding the US-China meeting next week. 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 tensions could spark fresh concern over global fuel demand and undermine the WTI price in the near term.
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