Oil prices increased on Thursday following reports that US President Donald Trump may reach a tariff agreement with trading partners and data showing an increase in domestic oil demand.
The international benchmark Brent crude increased around 0.3% to $68.27 per barrel at 10.23 a.m. local time (0723 GMT), up from $68.06 at the previous session's close.
The US benchmark West Texas Intermediate (WTI) crude rose by 0.32% to $65.49 per barrel, compared to $65.28 in the prior session.
Prices re supported by reports that Washington and Brussels are nearing a trade agreement that would impose reciprocal 15% tariffs on select goods, mirroring a recent US-Japan deal.
The Financial Times reported Wednesday that the bloc could accept the levies to avoid a planned increase to 30% starting Aug. 1 under the Trump administration.
Both sides could lift tariffs on certain goods, such as aircraft, spirits, and medical devices, the paper added.
The US President said Wednesday that the US would allow the EU to pay lower tariffs if the bloc agrees to open its market to American companies.
Speaking at the AI Summit in Washington, DC, Trump said they opened previously closed markets and offered such an agreement to the EU as part of ongoing serious negotiations.
Recalling the completion of the trade agreement with Japan, Trump said: "And we've made numerous other deals like that, but opening up of a country is very important to us."
Trump also explained that they had reached agreements with the UK, the Philippines, and Indonesia, and were in the process of finalizing a trade agreement with China.
The US' push for broader global trade agreements has bolstered expectations of a pickup in worldwide economic activity, fueling oil demand and supporting prices.
Meanwhile, signs of strong demand in the US, the world's largest oil consumer, also helped push prices higher.
US commercial crude oil inventories decreased by 0.8% during the week ending July 18, according to the Energy Information Administration (EIA).
Inventories fell by around 3.2 million barrels to 419 million barrels, surpassing market expectations of a 1.4 million-barrel draw.
EIA data also showed that US crude oil production decreased by 102,000 barrels per day (bpd) to about 13.27 million bpd.
The decline in stocks signals strong domestic demand, while the drop in production has increased supply concerns and pushed prices higher.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr