Oil prices rose in Asian trade on Thursday, encouraged by improving market sentiment after a U.S. court ruled that President Donald Trump could not proceed with his plans for reciprocal trade tariffs.
Crude also rose after the OPEC+ ducked market expectations for an increase in the group’s output quota, while signs of a sharp drawdown in U.S. inventories spurred bets on tighter supplies. Focus is now on an upcoming OPEC+ decision on July production, although the group is now expected to leave output unchanged.
Oil was sitting on some gains this week after a devastating Russian attack on Ukraine sparked expectations of more U.S. sanctions, while the restriction of Chevron’s Venezuelan crude exports also pointed to tighter supplies.
But oil prices were still trading down sharply so far in 2025, as they were battered by concerns over weak demand and slowing economic growth.
Brent oil futures for July rose 1% to $65.55 a barrel, while West Texas Intermediate crude futures rose 1.1% to $62.51 a barrel by 21:22 ET (01:22 GMT).
Oil cheered by court blocking Trump tariffs Oil tracked gains in broader financial markets after a federal court blocked Trump’s “liberation day” tariffs, stating that the President superseded his authority in their imposition.
The ruling boosted risk appetite, amid hopes that Trump will not be able to impose the tariffs when his early-July deadline expires. Trump had unveiled the proposed tariffs– which entail double-digit duties against several major economies– in early-April, an event he dubbed as “liberation day.”
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Trump’s tariff plans were the biggest point of uncertainty for oil markets this year, as traders fretted over their economic impact and their effect on oil demand.
But analysts warned that Wednesday’s court ruling added another layer of uncertainty to Trump’s tariffs, given that the White House is likely to appeal the decision.
The ruling could also disrupt the Trump administration’s trade talks with major economies, who until Wednesday faced a 90-day deadline to reach a deal or face Trump’s reciprocal tariffs.
US oil inventories see major drawdown- API Data from the American Petroleum Institute showed on Wednesday that U.S. oil inventories shrank by 4.24 million barrels (mb) in the past week, in contrast to expectations for a build of 1 mb.
The API data usually heralds a similar reading from government inventory data, which is due later on Thursday.
Signs of a sharp drawdown in U.S. oil stockpiles sparked hopes that fuel demand in the country remained strong despite heightened economic uncertainty.
More U.S. economic cues are also due later on Thursday, chiefly a revised reading on first-quarter gross domestic product. Preliminary data showed the U.S. economy shrank 0.3% in the first quarter, ramping up concerns over weakening demand.
