Oil prices climbed during Asian trade on Thursday, recouping losses from the previous session as upbeat economic data and renewed trade optimism lifted market sentiment.
By 2:55 pm AEST (4:55 am GMT), Brent crude futures rose 27 cents, or 0.4%, to $68.79 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 39 cents, or 0.6%, to $66.77.
Both benchmarks had fallen more than 0.2% on Wednesday.
Fresh data from the United States Energy Information Administration showed crude inventories fell by 3.68 million barrels to 422.2 million barrels last week — a far steeper drop than expectations of a 900,000-barrel draw.
However, price gains were capped by larger-than-expected builds in gasoline and diesel stockpiles, suggesting mixed downstream demand.
The U.S. Federal Reserve’s latest Beige Book, released Wednesday, described a modest pickup in activity across several districts.
Still, it noted that the business outlook remained “neutral to slightly pessimistic”, with many firms reporting rising costs due to higher import tariffs.
In China, second-quarter GDP growth slowed, but less than anticipated, easing some concerns over the economic outlook. Analysts attributed part of the resilience to front-loaded activity ahead of new U.S. tariffs.
Meanwhile, June crude oil throughput surged 8.5% from a year earlier, indicating stronger fuel consumption in the world’s top importer.
U.S. President Donald Trump also struck a more conciliatory tone on trade. He expressed optimism about striking a deal with China on drug enforcement, and noted that talks with India were “very close” to a trade agreement.
