Oil Edges Higher With Progress of US Trade Talks in Spotlight
(Bloomberg) -- Oil edged higher as investors monitored progress on tariff talks between the US and its key trade partners.
Brent rose toward $69 a barrel after a three-day decline, while West Texas Intermediate was near $66. President Donald Trump unveiled an agreement with the Philippines setting a 19% tariff and a deal with Japan that sets a 15% rate, fueling a rally in Asian shares and US stock futures.
US Treasury Secretary Scott Bessent said he will meet his Chinese counterparts for trade talks in Stockholm next week, and will “be working out what is likely an extension” to the current Aug. 12 deadline for negotiations. He also said that the discussions with China can now take on a broader array of topics, potentially including Beijing’s continued purchases of “sanctioned” oil from Russia and Iran.
Crude has traded in a relatively narrow range this month after a volatile June, when prices were jolted by the conflict between Israel and Iran. Brent is still down about 8% this year on concerns Trump’s tariff war will stifle consumption and as OPEC+ brings back production.
“I expect continued mild downward pressure on crude as uncertainty grips markets and economic sentiment wobbles ahead of the Aug. 1 deadline for US tariff deals,” said Vandana Hari, founder of consultancy Vanda Insights, adding that prices may swing between gains and losses in the near term.
Some market metrics point to softness. The prompt spread for Brent — the difference between the nearest two contracts — is trading near the weakest since June 10, narrowing a bullish structure known as backwardation.
In the US, meanwhile, the American Petroleum Institute said nationwide crude inventories fell slightly last week, while distillate stockpiles rose. Official data is due later on Wednesday.
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