Oil prices declined on Tuesday amid growing concerns that slowing business activity could impact fuel demand, as trade tensions escalate between the United States and the European Union—both major consumers of crude.
اضافة اعلان
Brent crude futures fell by 52 cents, or 0.75%, to $68.69 per barrel as of 03:25 GMT.
U.S. West Texas Intermediate (WTI) crude was down 51 cents, or 0.76%, at $66.69 per barrel.
The August WTI contract expires on Tuesday. The more actively traded September contract dropped 54 cents, or 0.82%, to $65.41 a barrel.
Priyanka Sachdeva, Senior Market Analyst at Phillip Nova, said:
"Concerns over demand persist amid rising global trade tensions, especially as markets await the latest tariff threats between major economies and potential announcements from Trump ahead of the August 1 deadline."
She added that investors are also monitoring the ripple effects of new U.S. sanctions on Russian crude oil.
Supply concerns have largely eased thanks to increased output by major producers, and following the June 24 ceasefire that ended the conflict between Israel and Iran.
A weaker dollar offered some support to crude prices, making oil less expensive for buyers using other currencies.
Tony Sycamore, market analyst at IG, wrote in a note that prices have dipped as "trade war fears offset the support provided by a softer dollar."
Sycamore also pointed to the potential for an escalation in the U.S.-EU trade dispute over tariffs.
According to EU diplomats, the bloc is exploring a broader range of potential countermeasures against the United States as hopes fade for a mutually acceptable trade deal with Washington.
The U.S. has threatened to impose 30% tariffs on EU imports starting August 1 if no agreement is reached.
Reuters
