Oil prices rose modestly this week amid data suggesting a decrease in US crude oil inventories, investors weighed uncertainties surrounding the US Federal Reserve's (Fed) interest rate path, and ongoing trade negotiations.
International benchmark Brent crude increased by around 0.4%, trading at $64.96 per barrel at 10.35 a.m. local time (0735GMT), up from $64.68 at the previous session's close.
Similarly, US benchmark West Texas Intermediate (WTI) rose by about 0.4%, reaching $62.45 per barrel, compared to $62.18 in the prior session.
The modest gains follow a larger-than-expected draw in US commercial crude inventories, which declined by 4.3 million barrels to 436.1 million barrels last week, according to data from the US Energy Information Administration (EIA).
The drop exceeded analyst forecasts of a 2.9 million-barrel decrease, reinforcing expectations of stronger demand.
Market sentiment was also buoyed by rising expectations that the Fed could deliver its first rate cut as early as July, ahead of previous forecasts for a move in September. Analysts say recent data signal mounting risks to US economic growth, prompting investors to recalibrate rate expectations.
Lower interest rates, coupled with a weaker dollar and improved macroeconomic conditions, are seen as supportive for oil prices going forward.
Trade policy developments also remain a key market driver. US President Donald Trump is expected to meet with Chinese President Xi Jinping later this week as part of ongoing tariff negotiations.
Parallel discussions between the US and EU continue, with officials from both sides meeting recently.
Analysts note that progress in trade talks—particularly a potential agreement with the EU—has helped ease fears of a deepening global trade war, contributing to a more optimistic outlook for global oil demand.
Fuel cards users can expect prices to remain fairly static with minimal movement depending on card type.
