Crude oil prices climbed on Thursday, supported by a weaker US dollar and expectations of strong fuel demand in the United States, the world’s largest oil consumer.
Global oil prices have been volatile amid renewed US tariff threats and concerns over potential damage to global economic growth. Analysts have expressed worries that President Donald Trump’s use of tariffs against longstanding allies could reverse the global trade order, adding uncertainty to commodity markets.
The US dollar has weakened against major trading partners as investors reduced their exposure to the greenback, making oil cheaper for holders of other currencies and boosting demand. The US dollar index dipped 0.15% to 97.055 in early Thursday trading.
Brent crude rose to $69.62 per barrel, while US benchmark West Texas Intermediate (WTI) inched up by 0.01% to $67.30 per barrel from $67.29 in the previous session.
The US Energy Information Administration (EIA) reported a 2.7 million barrel drop in gasoline inventories last week, indicating strong fuel demand during the July 4 holiday period.
Further supporting market sentiment, minutes from the US Federal Reserve’s recent meeting showed that most Fed officials see it appropriate to cut interest rates this year, with some open to a rate cut as early as July. Lower interest rates typically weaken the dollar, providing an additional boost to oil demand.
Meanwhile, Trump’s comments on trade tariffs remain in focus for markets. The US president warned that any country aligning with BRICS’ “anti-American policies” would face an additional 10% tariff, adding, “There will be no exceptions.” He also announced new tariff plans targeting seven countries, including the Philippines, Iraq, and Libya, while threatening a separate 50% customs duty on Brazilian products.
These trade tensions continue to cloud the global economic outlook, creating mixed signals for oil prices as concerns over demand remain despite near-term support from a weaker dollar and strong US consumption.
