Oil prices finally fall on trade war fears
22 July 2025 09:07
Oil prices declined on Tuesday amid growing fears of a trade war between the main consumers of crude oil – the United States and the European Union. This may lead to a reduction in fuel demand growth due to a decline in economic activity, so such sentiment has had a negative impact on investment expectations, "Komersant Ukrainian" reports citing Reuters.
Price dynamics on world markets
According to OilPrice.com, futures for Brent crude oil fell 48 cents, or 0.69%, to $68.73 per barrel as of 08:51 Kyiv time. US West Texas Intermediate (WTI) was trading at $66.60 per barrel, down 60 cents, or 0.89%. Both benchmarks ended Monday with a slight decline.
The August contract for WTI expires on Tuesday, while the more active September contract fell 54 cents, or 0.82%, to $65.41 per barrel.
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Expert analysis and factors influencing the market
“Overall demand concerns continue amid escalating global trade tensions, especially as markets monitor the latest tariff threats between major economies and potential announcements from Trump ahead of the August 1 deadline. Investors are also watching the ripple effects of new US sanctions on Russian oil,”
– commented Priyanka Sachdeva, Senior Market Analyst at Phillip Nova.
Supply concerns have largely been allayed after major producers increased output and following the June 24 ceasefire that ended the conflict between Israel and Iran. However, investors are increasingly worried about the state of the global economy amid changes in US trade policy.
The weakening of the US dollar provided some support for crude oil, as buyers using other currencies pay relatively less.
Prices fell as
“trade war fears offset support from a weaker US dollar,”
– IG market analyst Tony Sycamore wrote in a note.
Trade tensions between the US and the EU
Sycamore also pointed to the possibility of an escalation in the US-EU trade dispute over tariffs.
The EU is exploring a broader set of possible countermeasures against the United States as prospects for an acceptable trade deal with Washington fade, EU diplomats say. The U.S. has threatened to impose a 30% tariff on EU imports starting August 1 if no deal is reached.
Oil supply growth
There are also signs that a growing supply of oil is entering the market as OPEC lifts its production cuts.
Saudi Arabia’s crude oil exports rose to the highest level in three months in May, data from the Joint Organizational Data Initiative (JODI) showed on Monday.
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