Image Credit: Reuters

Crude Gains Ground Amid Renewed Trade Hopes

Oil prices rose on Thursday, buoyed by improving trade sentiment between the United States and the European Union, alongside new supply-side concerns following Russia’s announcement of a gasoline export cut.

Brent crude futures climbed 47 cents to $84.59 per barrel, while U.S. West Texas Intermediate (WTI) rose 43 cents to $80.33, extending the week’s upward momentum. Analysts attributed the gains to strengthening risk sentiment globally and renewed supply risks in refined product markets.

According to Yahoo Finance, markets were encouraged by signals that U.S. and EU leaders are advancing discussions on trade and investment cooperation. Positive developments in cross-Atlantic trade talks lifted broader market sentiment, fueling expectations of stronger economic activity and, in turn, increased oil demand.

Russia’s Gasoline Export Ban Fuels Supply Fears

In addition to trade optimism, prices were supported by Russia’s decision to temporarily restrict gasoline exports, a move aimed at stabilizing domestic fuel prices and preventing supply shortages.

As reported by Reuters, the export restriction adds another layer of uncertainty to global fuel markets. With Russia being a key supplier of refined products, any disruption could ripple through regional markets, particularly in Eastern Europe and Central Asia.

The gasoline curbs are expected to last at least a month, coinciding with peak seasonal demand in the Northern Hemisphere. Traders noted that the move may prompt refiners in other countries to ramp up output, which could tighten crude inventories in the short term.

Broader Market Cues Support Crude Outlook

Market attention also remains focused on U.S. inventory data, which showed a larger-than-expected drawdown in crude stockpiles. This signals continued strong fuel consumption heading into the latter part of summer.

Coupled with the latest macro indicators, the broader oil market appears poised for a more bullish bias. Analysts note that improving trade conditions, such as the ones outlined in The Economic Times, combined with tightening product supply, provide dual tailwinds for crude.

Additionally, sentiment around interest rate stability in the U.S. and Europe has helped bolster risk assets, including commodities. A more predictable monetary policy environment typically supports energy prices, as it improves global demand visibility.

Outlook: Tightening Supply Meets Trade Tailwinds

With geopolitics, trade diplomacy, and refining disruptions all playing a role, the outlook for oil remains constructive. Analysts are watching for any further developments from Russia, and whether the U.S.-EU trade tone translates into real growth.

For now, the combination of improving demand expectations and short-term supply tightening is giving oil bulls the momentum they need. Any signs of deepening trade cooperation or prolonged supply restrictions could push Brent and WTI closer to their quarterly highs.

 

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