West Texas Intermediate (WTI) crude oil climbed above $71 per barrel on Thursday as easing trade tensions supported risk appetite in financial markets. The rebound followed a period of uncertainty, with traders reassessing the potential impact of tariffs on global demand.
Market sentiment improved after officials signaled progress in trade negotiations, reducing fears of further disruptions to supply chains. The softer stance on tariffs helped stabilize energy markets, which had faced pressure from economic slowdown concerns.
Meanwhile, U.S. crude inventories declined, adding support to oil prices. A reported draw in stockpiles reflected steady demand, reinforcing expectations that supply fundamentals remain intact despite external headwinds.
The broader commodities market also saw gains as investors moved away from defensive positioning. Risk-sensitive assets, including equities and industrial metals, benefited from renewed optimism over economic stability.
However, analysts caution that volatility may persist as traders continue to monitor geopolitical developments and central bank policies. Any shifts in Federal Reserve rate expectations or unexpected policy changes could impact demand projections.
With the focus now on upcoming economic data and OPEC+ supply dynamics, WTI crude is expected to remain sensitive to market sentiment, with price movements closely tied to broader macroeconomic trends.
