Oil steadied after a string of losses, with investors looking to US trade talk progress and low inventory levels.

Brent crude traded below $69 a barrel after four sessions of declines, with West Texas Intermediate above $65. US President Donald Trump said he would set tariffs of 15% to 50% ahead of an Aug. 1 deadline for trade talks. The 15% levy rate was set for Japan on Wednesday, while the European Union is progressing toward a similar agreement.

"There may be mild buoyancy in crude from a less-dismal demand-side assumption as markets express relief on the worst-case tariff threats being averted," said Vishnu Varathan, head of macro for Asia at Mizuho Bank Ltd. But this "tariff cheer" might only be a temporary reprieve in what's still likely to be a hit to global growth.

US nationwide crude inventories, meanwhile, fell by 3.2 million barrels last week, although levels at the oil storage hub of Cushing — the delivery point for WTI — rose for a third week. While diesel inventories were higher, they're still at the lowest seasonal level since 1996.

Crude has been in a holding pattern this month, with tightness in global diesel markets over the summer months offset by expectations of a deluge of supply from OPEC+ as the group raises production quotas. Sanctions also remain in focus, with the EU's latest curbs on Russia potentially affecting importers like India and US Treasury Secretary Scott Bessent reiterating that China's purchases of Russian and Iranian oil may form part of trade negotiations next week.

Brent for September settlement gained 0.4% at $68.75 a barrel at 8:03 a.m. in Singapore.

WTI for September delivery rose 0.4% to $65.52 a barrel. Oil Steadies With US Trade Tariff Outlook, Stockpiles in Focus.

Source: Bloomberg