Oil prices ascend after a trade agreement between Washington and Tokyo

Oil prices rose in early trading today, Wednesday, after they decreased to three consecutive sessions, after announcing a trade agreement between the United States and Japan and expectations of the decrease in US crude stocks last week, indicating an increase in demand.

Brent crude futures rose 33 cents, or 0.48%, to $ 68.92 a barrel by 00:23 GMT. US West Texas Intermediate crude futures increased 33 cents, or 0.51% to $ 65.64 a barrel.

US President Donald Trump said on Tuesday that the United States and Japan have concluded a commercial agreement that includes 15% customs duties on US imports from Japan. He also said that Japan had agreed to $ 550 billion in investments in the United States.

The oil had decreased in the previous session after the European Union said it was considering taking counter measures against American customs duties, as hopes for reaching an agreement faded before the deadline on the first of August.

A broad poll conducted by “Reuters” on Tuesday showed that crude oil stocks in the United States decreased last week, along with the distillation and gasoline products.

Nine analysts in a Reuters poll estimated before the weekly stock data were issued that crude stocks decreased on average by about 1.6 million barrels per week ending July 18.

Sources in the market, quoting the numbers of the American Petroleum Institute on Tuesday, said that the stocks of crude and gasoline in the United States decreased last week, while the distillation products increased.

In another indication of the rise in prices, the US Energy Minister said on Tuesday that the United States will consider imposing sanctions on Russian oil to end the war in Ukraine.

On Friday, the European Union agreed to the 18th package of sanctions against Russia, which reduced the ceiling of the Russian crude price. But analysts said that the lack of participation of the United States would hinder the effectiveness of the package.