Oil prices stopped falling due to the US-Japan trade deal
23 July 2025 09:15
Oil prices rose slightly during Asian trading on Wednesday after three consecutive sessions of decline, as the US-Japan trade deal showed progress on tariffs. At the same time, the growth was limited due to diminishing hopes for a breakthrough at the EU-China summit, "Komersant Ukrainian" reports citing Reuters.
According to OilPrice.com, futures for Brent crude rose 20 cents, or 0.29%, to $68.79 per barrel as of 09:09 Kyiv time. Futures for US West Texas Intermediate crude rose 19 cents, or 0.29%, to $65.50 per barrel.
Both benchmarks had fallen by about 1% during the previous session after the EU announced it was considering countermeasures against US tariffs, and hopes for a deal by the August 1 deadline faded.
US President Donald Trump said on Tuesday that the US and Japan have signed a trade agreement that provides for a 15% tariff on US imports from Japan. He also said that Japan has agreed to invest $550 billion in the United States.
EU-China
Meanwhile, industry expectations for Thursday’s EU-China summit remain low. The summit will test the bloc’s unity and resolve amid growing trade tensions with both Beijing and Washington.
“The price slide of the past three sessions seems to have stopped, but I don’t expect much of a boost from news of a US-Japan trade deal as reported obstacles and delays in negotiations with the EU and China will remain a drag on sentiment,”
– said Vandana Hari, founder of Vanda Insights.
China’s commerce minister and the European Union’s trade chief held a “frank and in-depth” discussion on economic and trade cooperation, as well as other issues, ahead of the summit, the Chinese ministry said on Wednesday.
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USA
Separately, U.S. crude oil and gasoline stockpiles declined last week, market sources said, citing data from the American Petroleum Institute released on Tuesday. Distillate stocks increased by 3.48 million barrels.
“This will bring some relief to the middle distillate market, which has been looking increasingly tight,”
– iNG analysts wrote in a note, adding that low crude stocks will support prices, even though a large oversupply is expected later this year.
Russia
Another bullish signal for the crude oil market came from the US Energy Secretary’s statement on Tuesday that the US will consider sanctions against Russian oil to end the war in Ukraine.
On Friday, the EU approved its 18th package of sanctions against Russia, lowering the price ceiling for Russian crude oil. However, analysts noted that the absence of US participation will reduce the effectiveness of this package.
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