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Crude oil prices held broadly steady on Wednesday as markets weighed a landmark US-Japan trade agreement against persistent uncertainty in US-EU negotiations.

Brent crude slipped 8 cents, or 0.12%, to close at $68.51 per barrel.

WTI crude eased 6 cents, or 0.09%, to $65.25.

The subdued reaction followed confirmation that Washington and Tokyo had finalised a substantial trade pact, featuring a $550 billion investment and loan package targeted at US infrastructure and industrial projects. In exchange, Japan will be exempt from further US tariffs. Market participants view the deal as a potential framework for future American trade diplomacy.

However, optimism was checked by stalled progress in US-EU talks. The European Commission indicated that discussions remain inconclusive, with a 15% tariff on European goods likely to take effect from 1 August, a scaled-back version of a previously proposed 30% levy. Brussels is preparing retaliatory tariffs worth €93 billion on US imports, though implementation is not expected before 7 August.

On the supply side, weekly US EIA data showed crude inventories fell by 3.2 million barrels to 419 million, exceeding expectations amid stronger exports and reduced net imports. Exports rose 337,000 bpd to 3.86 million bpd, while net imports dropped by 740,000 bpd.

Written: Aiman Haikal