Oil Prices Steady Amid Economic Uncertainty and Anticipation of U.S. Interest Rate Decision - Jordan News

Jordan News

29-07-2025

Oil prices held steady on Tuesday as markets remained cautious about global economic prospects following a trade agreement between the United States and the European Union, while investors awaited the upcoming decision from the U.S. Federal Reserve on interest rates. اضافة اعلان Brent crude futures rose by one cent, reaching $70.05 per barrel at 06:10 GMT, while West Texas Intermediate (WTI) crude edged down two cents to $66.69 per barrel. Both benchmarks had closed the previous session up by more than 2%, with Brent reaching a recent high. Although the trade deal between Washington and Brussels includes a 15% tariff on most European goods, it helped avert a full-blown trade war that could have endangered a third of global trade and weakened fuel demand. The agreement also outlines a commitment by the EU to purchase $750 billion worth of U.S. energy over the coming years—a target analysts describe as nearly impossible—in addition to $600 billion in European investments in the U.S. during President Donald Trump's second term. According to an analytical note from ANZ Bank, 'While the agreement provided relief to global markets amid persistent uncertainty, the timeline for implementing the investment commitments remains vague. We believe the 15% tariff will challenge eurozone economic growth but is unlikely to trigger a recession.' Meanwhile, senior economic officials from the U.S. and China met in Stockholm on Monday for more than five hours of discussions aimed at resolving ongoing economic disputes, with talks expected to resume on Tuesday. Oil market participants are also closely watching the Federal Open Market Committee (FOMC) meeting on July 29–30, amid expectations that interest rates will remain unchanged. However, analysts suggest the Fed may adopt a more dovish tone due to declining inflation indicators, according to Priyanka Sachdeva, market analyst at Phillip Nova. Sachdeva added, 'Momentum is skewed toward the upside in the short term, but the market remains vulnerable to volatility from surprise central bank moves or failed trade negotiations.' In another development, companies involved in global green hydrogen projects have begun canceling or scaling back investments, signaling that reliance on fossil fuels may persist longer than globally anticipated.
Additionally, U.S. President Donald Trump on Monday gave Russia a new deadline of '10 to 12 days' to make progress in ending the war in Ukraine, threatening new sanctions on Moscow and on countries that continue buying Russian exports if no progress is made, according to Reuters.