Oil prices rose in Asian trading on Wednesday, lifted by optimism over a new U.S.-Japan trade deal and further supported by data showing a decline in U.S. crude stockpiles.
As of 22:07 ET (02:07 GMT), Brent Oil Futures expiring in September rose 0.4% to $68.84 per barrel, while West Texas Intermediate (WTI) crude futures gained 0.3% to $65.50 per barrel.
Oil prices fell consecutively in the last three sessions amid the U.S.-EU trade conflict, and growing worries around President Donald Trump's August 1 tariff deadline.
Japan trade deal lifts global growth outlook
President Trump announced on Tuesday that Washington and Tokyo have struck a broad trade deal that includes a 15% tariff on all imported Japanese goods, down from a previously proposed 25%.
The U.S. secured a massive $550 billion Japanese investment in the U.S. economy under the deal.
The agreement opens Japanese markets to U.S. exports, including autos, agricultural goods, and energy products, reinforcing positive sentiment around global trade and demand growth.
The deal is the most significant of a string of trade deals negotiated by the White House ahead of a looming August 1 deadline, when higher levies on key trading partners were set to take effect.
Oil investors viewed this progress as a catalyst for enhanced economic activity, which typically supports higher crude demand.
US crude stocks drop after significant rise - API
Compounding the upbeat trade news, the American Petroleum Institute reported a surprising drop of 577,000 barrels in U.S. crude inventories for the week ended July 18, reversing a previous week's build of 19.1 million barrels.
The drawdown signaled a possible rebound in fuel demand during the peak summer travel season.
Gasoline stockpiles decreased by 1.2 million barrels, while distillate inventories -- the class of fuels that includes diesel and heating oil -- increased by about 3.48 million barrels.
"This will offer some relief to the middle distillate market, which has been looking increasingly tight," ING analysts said in a note.
Official data from the U.S. Energy Information Administration (EIA) is due later on Wednesday, with markets watching closely for confirmation.
Source: Investing.com
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