Oil Prices Rise on Trade Optimism and Russian Plans to Restrict Gasoline Exports

Oil prices witnessed an increase during early trading on Friday, July 25, supported by positive expectations regarding a trade agreement between the United States and the European Union, in addition to reports of Russia's intention to impose restrictions on gasoline exports to several countries.

According to data, Brent crude futures rose by 17 cents (0.3%) at 00:27 GMT to reach $69.35 per barrel, while WTI crude futures increased by 15 cents (0.2%) to $66.18 per barrel.

This rise followed gains from Thursday's session that exceeded 1%, supported by news indicating the possibility of Russia reducing its gasoline exports. The market also disregarded reports of a potential U.S. approval for Chevron to resume some of its oil operations in Venezuela, as reported by the Wall Street Journal citing sources in the Trump administration.

The decrease in U.S. inventories contributed to price increases, as data from the Energy Information Administration showed a decrease of 3.2 million barrels last week, bringing total inventories to 419 million barrels, a larger decline than analysts' expectations of only 1.6 million barrels.

On the other hand, hopes for a trade agreement between Washington and Brussels, including a 15% reduction in tariffs on some European products, boosted confidence in the oil market. In this regard, Tony Sycamore, an analyst at IG, said: "The consolidation of crude prices above the $64-65 per barrel level this week reinforces optimism about the possibility of prices returning to the $70 level."

The market is now awaiting the upcoming economic data from China and the United States next week, especially manufacturing, inflation, employment, and inventories indicators, as they have a direct impact on global oil demand expectations.