Oil Prices Rise 1% Amid Supply Concerns and US Crude Draws

Oil prices rose 1% on Thursday as US crude draws and expected Russian gasoline export cuts outweighed news of Chevron's approval to renew production in Venezuela. Brent crude futures settled at $69.18 a barrel, up 67 cents, while US WTI crude futures finished at $66.03 a barrel, up 78 cents. The market rebounded on news of Russia's planned gasoline export cuts and hopes for a US-EU trade deal that would lower tariffs.

Oil prices experienced a 1% increase on Thursday, driven by U.S. crude draws and expected cuts to Russian gasoline exports, which outweighed the news of Chevron's approval to renew production in Venezuela. Brent crude futures settled at $69.18 a barrel, up 67 cents, while U.S. West Texas Intermediate (WTI) crude futures finished at $66.03 a barrel, up 78 cents [2].

The market rebounded in late trading on news that Russia was planning to cut gasoline exports to all but a few allies and nations, such as Mongolia, with which it has supply agreements [2]. This development provided support to oil prices, as did the previous day's report of a U.S. crude inventory draw and hopes for a trade deal between the U.S. and the European Union that would lower tariffs [2].

The U.S. Energy Information Administration (EIA) reported that U.S. crude stocks declined sharply last week, falling by 3.2 million barrels to 419 million barrels, far exceeding analysts' expectations [2]. This significant drop in inventories, coupled with resilient demand in the U.S. market, provided support for oil prices [1].

Trade deal developments also drew investor attention. President Trump revealed a trade agreement with Japan on Wednesday that sets tariffs on Japanese imports at 15%, reduced from an earlier proposed 25% [1]. The deal includes a commitment of $550 billion in Japanese investments into the U.S. economy and opens Japanese markets to U.S. exports including vehicles, agricultural goods, and energy products. This agreement is the most significant in a series of trade deals negotiated by the administration before the August 1 tariff deadline, raising hopes for further agreements [1].

Still, investors remain cautious, especially regarding a potential deal with the European Union, which has hinted at retaliatory measures against U.S. tariffs [1]. The U.S. Federal Reserve's (Fed) announcement that it will not cut interest rates until the next quarter limited the upward price movement, but analysts will closely follow US Federal Reserve Chairman Jerome Powell's statements today on the course of the U.S. economy and the possible effects of tariffs [3].

References:
[1] https://ih.advfn.com/market-news/article/13380/oil-prices-rise-on-steep-u-s-inventory-drop-focus-on-trade-deal-progress
[2] https://www.reuters.com/business/energy/crude-finishes-with-1-gain-supply-concerns-us-crude-draws-2025-07-24/
[3] https://www.aa.com.tr/en/economy/oil-prices-rise-amid-russian-supply-concerns-tightening-global-supply/3478573