Oil prices edged higher on Thursday as improved economic signals from major crude consumers and easing global trade tensions supported market sentiment.
Brent crude oil, against which Nigerian crude oil is priced, rose by 24 cents or 0.35 percent to $68.76 per barrel as of 05:57 a.m. in Nigeria, while U.S. West Texas Intermediate (WTI) advanced by 33 cents or 0.5 percent to $66.71.
The upward movement follows three consecutive sessions of price declines with the rebound largely driven by stronger-than-expected data from China and the United States, as well as geopolitical developments suggesting a de-escalation in global trade conflicts.
U.S. crude inventories dropped by 3.9 million barrels to 422.2 million barrels last week, according to the Energy Information Administration (EIA), surpassing analysts’ expectations for a 552,000-barrel draw. The sharper inventory reduction points to increased refinery throughput and rising domestic demand.
Despite the bullish crude stock data, gains were limited by larger-than-expected builds in gasoline and distillate inventories, indicating potential weakness in downstream fuel demand during the peak summer travel season. Analysts at ANZ flagged the risk of demand softening, noting inventory pressure in refined products.
In parallel, trade-related sentiment improved following remarks from U.S. President Donald Trump signaling potential tariff relief for smaller nations and progress in trade negotiations. Trump announced new trade agreements with Indonesia and Vietnam and hinted at imminent deals with India and possibly Europe.
Also, he referenced softened positions on China, including the partial lifting of technology export restrictions.
Market analysts said the developments reduce trade friction risks and support energy demand projections in the short term.
“China’s better-than-expected economic data and the U.S. inventory draw are both price-supportive factors,” said independent analyst Tina Teng.
Economic data from China showed Q2 GDP growth slowed, but not as significantly as anticipated, due to front-loaded activity in response to tariff concerns.
Crude oil throughput in China also rose 8.5 percent year-on-year in June, indicating firm underlying demand in the world’s top crude importer.
Meanwhile, the Federal Reserve’s latest Beige Book indicated a moderate pickup in U.S. economic activity, although future outlooks remained cautious due to persistent inflationary pressures tied to import tariffs.
While Brent and WTI posted modest intraday gains, analysts continue to monitor macroeconomic risks, inventory fluctuations, and central bank guidance as key variables for crude price trajectory in the second half of the year.
Market participants await further clarity from upcoming U.S. inflation reports, OPEC+ production updates, and any policy shifts related to global trade or monetary tightening.
