Oil price falls as trade war concerns increase worries about fuel demand
Brent crude futures fell 52c, or 0.75%, to $68.69 (R1,209) a barrel by 3.25 GMT. US West Texas Intermediate crude was at $66.69 (R1,174) a barrel, down 51c, or 0.76%. The benchmarks settled slightly lower on Monday.
The August West Texas Intermediate contract expires on Tuesday and the more active September contract was down 54c, or 0.82%, to $65.41 (R1.151) a barrel.
'Broad demand concerns continue to simmer amid escalating global trade tensions, specially as markets eye the latest tariff threats between major economies and [US President Donald] Trump's potential announcements ahead of the August 1 deadline,' said Priyanka Sachdeva, senior market analyst at Phillip Nova.
'Investors are also eyeing the ripple effects of fresh US sanctions on Russian crude,' she said.
Supply concerns have largely been alleviated by major producers raising output and since a ceasefire on June 24 ended the conflict between Israel and Iran. However, investors are increasingly worried about the global economy amid US trade policy changes.
A weaker US 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 (US 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 US and the EU over tariffs.
The EU is exploring a broader set of possible countermeasures against the US as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats. The US has threatened to impose a 30% tariff on EU imports on August 1 if a deal is not reached.
There are also signs rising oil 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 showed on Monday.
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The Citizen
26 minutes ago
- The Citizen
‘Open our eyes and ears' – Ramaphosa on how to tackle US tariff hike on SA cars
In response to the incoming US tariffs, Ramaphosa said South Africa needs to look at other markets. South Africa will feel the wrath of the Trump administration as it stands firm on implementing the 30% tariff on exports to the United States (US). Other countries will also be affected by President Donald Trump's decision, as their export tariffs are increasing as well. In South Africa, the automotive sector will be significantly impacted, as some brands, such as Mercedes-Benz, export to the US. President Cyril Ramaphosa, speaking at the BMW plant in Rosslyn, Pretoria, on Thursday, highlighted that the automotive industry has a significant impact on the country's GDP, as it contributes 4.9%. ALSO READ: US tariff of 30% on SA exports: where to now? Ramaphosa on US tariffs BMW Group SA hosted an engagement to highlight its commitment to strengthening South Africa's economic vitality and advancing its industrial innovation. 'The tariffs from the US have turned the world upside down and are a huge threat to us as well because we export a lot of products to the US, such as vehicles, agricultural products and mineral products,' said Ramaphosa. During his keynote address, he added that SA is the 22nd largest car exporter in the world. Ramaphosa added that the US market is important to SA; however, it is time to diversify the country's export base and accelerate domestic value creation. 'As we face this threat of higher tariffs, we need to open our eyes and ears and see where else our vehicles can go.' SA government engaging on US tariffs Ramaphosa added that producers of some industries have already felt the pressure of the incoming US tariffs. He said the South African government is engaging with the US, and he hopes this will yield success in the coming days. 'We need to look at other markets, and being an African country, with an African continental free-trade, we have got to see how we open up the rest of the continent, because we have a very positive tariff-free opportunity with the rest.' He applauded BMW for exporting the new X3 to Europe. He said that exporting cars to other countries demonstrates trust in the skills South Africans possess and highlights the industry's potential. ALSO READ: Devastating impact of US tariffs on SA automotive sector even before implementation BMW Group South Africa invited President @CyrilRamaphosa to a showcase of the successful implementation of the latest investment for production of the new BMW X3 Plug-in Hybrid Electric Vehicle at the automaker's plant at Rosslyn in Tshwane. — The Presidency 🇿🇦 (@PresidencyZA) July 24, 2025 BMW not affected by tariffs Danny Bester, BWM plant director, told The Citizen that they are not affected by the US tariffs, as they are not currently exporting to the country. 'Right now, we are not affected by the US tariffs because most of our volumes are going to other parts of the world, like Europe, Australia and New Zealand.' He added that they would like to have access to the American market. However, they have sent 16% of the current generation to the US. When asked if they will be looking into expanding in the future, Bester said BMW is aiming to build a new record volume by the end of the year. NOW READ: Mercedes-Benz halts production in Eastern Cape – Will employees be paid?

IOL News
2 hours ago
- IOL News
President Cyril Ramaphosa missing in action amid US tariffs
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IOL News
3 hours ago
- IOL News
Eskom ordered to cough up R1 billion in costs after cancelled Koeberg project
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