Oil prices rose in Asia on Wednesday. This was mainly due to the trade deal between the US and Japan and falling US oil supplies. In the past three days, oil prices have been falling. This is due to trade tensions between the US and the European Union and concerns about US tariffs starting on August 1.
As part of the deal, Japan will invest $550 billion in the US economy. The deal allows US exports such as cars, farm products and energy to enter Japan. This has made people more optimistic about global trade and future oil demand.
US oil supplies fall unexpectedly. The American Petroleum Institute (API) said that US oil supplies fell by 577,000 barrels last week. As the previous week saw a large increase of 19.1 million barrels. Gasoline supplies also fell by 1.2 million barrels. However, diesel and heating oil supplies increased by 3.48 million barrels.
