Oil prices fall after Trump’s statements on Russia
15 July 08:38
World oil prices fell on Tuesday after US President Donald Trump announced a 50-day deadline for Russia to end the war in Ukraine and avoid sanctions. This somewhat calmed traders’ fears of supply disruptions, "Komersant Ukrainian" reports citing Reuters.
Futures for Brent crude oil fell 29 cents, or 0.4%, to $68.92 per barrel as of 05:42 Kyiv time. At the same time, futures for US West Texas Intermediate crude oil fell 35 cents, or 0.5%, to $66.63. Both contracts closed more than a dollar lower in the previous trading session.
“Trump’s softer stance on Russian oil sanctions has eased fears of supply shortages, while his tariff plan continues to create economic pressure,”
– said Priyanka Sachdeva, Senior Market Analyst at Phillip Nova.
Oil prices rose on the news of potential sanctions, but later lost those gains as the 50-day deadline raised hopes that sanctions could be avoided. Traders were also speculating whether the US would actually impose high tariffs on countries that continue to trade with Russia.
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If Trump follows through on his threats and the proposed sanctions are implemented, it will dramatically change the outlook for the oil market.
“China, India and Turkey are the largest buyers of Russian crude oil. They will have to weigh the benefits of buying cheap Russian oil against the cost of their exports to the United States,”
– iNG analysts said.
On Monday, Trump announced new arms shipments to Ukraine, and on Saturday he said he would impose a 30% tariff on most imports from the European Union and Mexico starting August 1, adding to similar warnings for other countries.
The tariffs could slow economic growth, which could further reduce global fuel demand and drag down oil prices.
Meanwhile, according to Russian media reports, OPEC Secretary General said that oil demand will remain “very strong” during the third quarter, maintaining a balanced market in the near future.
Goldman Sachs on Monday raised its oil price forecast for the second half of 2025, citing potential supply disruptions, declining oil reserves in the countries of the Organization for Economic Cooperation and Development, and production restrictions in Russia.
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