Overview

• Brent crude futures rose about 0.5% to $68.92 a barrel and West Texas Intermediate climbed 0.51% to $65.64 in early Wednesday trading.
• President Donald Trump and Japan agreed on a tariff pact setting a 15% duty on US imports and securing up to $550 billion in Japanese investments, signaling a thaw in trade tensions ahead of an August deadline.
• A Reuters poll and American Petroleum Institute data pointed to a likely 1.6 million-barrel draw in US crude inventories last week, underscoring stronger demand despite recent price weakness.
• Markets remain cautious about the European Union’s 18th sanctions package on Russian oil—featuring a floating price cap from September 3—amid doubts over enforcement without US participation.
• Supply pressures persist as OPEC+ unwinds output cuts, Saudi exports reach a three-month high, and US rig counts drop to their lowest since September 2021, keeping prices range-bound.