Oil edges lower as trade war concerns increase worries about fuel demand
edged down on Tuesday as concerns the brewing trade war between major crude consumers the U.S. and the European Union will curb
fuel demand
growth by lowering
economic activity
weighed on investor sentiment.
Brent crude futures
fell 24 cents, or 0.35%, to $68.97 a barrel by 0055 GMT after settling 0.1% lower on Monday.
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U.S. West Texas Intermediate
crude was at $66.99 a barrel, down 21 cents, or 0.31%, following a 0.2% loss in the previous session.
The August WTI contract expires on Tuesday and the more active September contract was down 23 cents, or 0.35%, to $65.72 a barrel.
Still, the oil market has struggled to find any direction since the ceasefire on June 24 ending the conflict between Israel and Iran removed concerns about major supply disruptions in the key Middle East producing region.
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Since then, Brent has traded in a range of $5.19 and WTI in a range of $5.65 as supply concerns have been alleviated by major producers raising output and investors are increasingly worried about the global economy amid U.S. trade policy changes. However, a weaker
U.S. dollar
has provided some backing for crude as buyers using other currencies are paying relatively less.
Prices have slipped "as
trade war concerns
offset the support by a softer (U.S. dollar)," IG market analyst Tony Sycamore wrote in a note.
Sycamore also pointed to the possibility of an escalation in the trade dispute between the U.S. and the EU over
tariffs
.
The EU is exploring a broader set of possible counter-measures against the United States as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats. The U.S. has threatened to impose a 30% tariff on EU imports on August 1 if a deal is not reached.
There are also signs rising supply has entered the market as the Organization of the Petroleum Exporting Countries and their allies unwind output cuts.
Saudi Arabia's crude oil exports in May rose to their highest in three months, data from the Joint Organizations Data Initiative (JODI) showed on Monday.
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Indian Express
19 minutes ago
- Indian Express
French ministers say EU-US trade deal has merits but is also unbalanced
French government ministers said a framework trade deal between the United States and European Union had some merits – such as exemptions for some key French business sectors such as spirits – but was nevertheless unbalanced. 'The trade agreement negotiated by the European Commission with the United States will bring temporary stability to economic actors threatened by the escalation of American tariffs, but it is unbalanced,' wrote French European Affairs Minister Benjamin Haddad on X. That view was echoed by France's industry minister Marc Ferracci, who said more talks – which could last weeks or months – would be needed before the deal could be formally concluded. Ferracci told RTL radio that more needed to be done in terms of rebalancing the EU's trade relations with the U.S. 'This is not the end of the story,' Ferracci told RTL.
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First Post
19 minutes ago
- First Post
Trump strikes 'biggest ever' trade deal with EU: Here's what we know, what we don't
The US and European Union have struck a landmark trade deal imposing a 15 per cent tariff on most EU goods, averting Trump's threatened 30 per cent levy. The agreement promises $750 billion in US energy sales and $600 billion in EU investments, but leaves key issues unresolved read more The United States and the European Union have struck one of the most consequential trade agreements in recent years. Announced by US President Donald Trump and European Commission President Ursula von der Leyen during Trump's visit to Scotland, the pact establishes a 15 per cent tariff on most EU exports to America, replacing the looming threat of a 30 per cent levy that would have taken effect on August 1. While hailed as a breakthrough, the framework leaves crucial gaps unresolved. STORY CONTINUES BELOW THIS AD Both sides have presented the deal as a way to prevent a transatlantic trade confrontation, yet analysts are now parsing the details to understand exactly what has been agreed — and where negotiations must continue. The headline numbers: a 15 per cent tariff, billions in investment and major energy commitments. At the centre of the announcement is a 15 per cent tariff applied to 'the vast majority' of European goods shipped to the US — a rate lower than Trump's earlier proposals of 20 per cent and subsequent threats of 50 per cent and then 30 per cent, but still a dramatic jump from the near-zero tariff environment that existed before Trump's return to the White House. The deal is tied to two large European commitments. First, von der Leyen confirmed that the EU would purchase $750 billion (638 billion euros) worth of US natural gas, oil, and nuclear fuel, part of its continuing effort to pivot away from Russian energy sources. Second, European entities would invest $600 billion (511 billion euros) into the US economy, though the sources of this investment have not yet been disclosed. Standing alongside von der Leyen in Scotland, Trump celebrated the outcome, saying: 'I think this is the biggest deal ever made,' and praised the agreement as an expansion of US-EU ties. STORY CONTINUES BELOW THIS AD He argued that the deal would benefit both sides, claiming it would stabilise trade and create new opportunities for American farmers, energy companies and manufacturers. Von der Leyen, who led months of complex negotiations on behalf of the European Commission, described Trump as a 'tough negotiator' and acknowledged the compromise: 'The 15% rate was the best we could do.' She added that the deal would 'bring stability' and 'predictability' for companies on both sides of the Atlantic. Zero tariffs on these 'strategic' goods Although the 15 per cent tariff applies broadly — including on key sectors like cars, semiconductors and pharmaceuticals — there are notable carve-outs. Both sides agreed to zero tariffs on certain 'strategic' goods: Aircraft and aircraft parts Select chemicals Some generic drugs Semiconductor production equipment A range of agricultural items Critical raw materials and natural resources Von der Leyen stressed that the list is not final: 'We will keep working to add more products to this list.' Even with these exemptions, major questions linger. Tariff treatment for spirits remains unresolved, an issue of particular sensitivity given its impact on producers and consumers in both the US and the EU. Pharmaceuticals — a massive trade category — were intentionally left off the main deal. 'Pharmaceuticals were on a separate sheet of paper,' von der Leyen explained, meaning discussions will continue separately. A major flashpoint is steel. 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Time of India
19 minutes ago
- Time of India
Heineken sees beer sales dip but keeps profit outlook
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