Market News
Oil prices down as Trump's deadline for Russia eases supply fears -
Brent crude (BZ=F) lost 0.7% to trade at $68.72 a barrel, while West Texas Intermediate retreated 0.9% to $66.41.
Initially, oil prices had surged on speculation about upcoming sanctions. However, the market reversed course as the deadline imposed by Trump raised hopes that punitive measures could be avoided.
Investors began to question whether the US would actually go ahead with imposing high tariffs on nations continuing to trade with Russia.
“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 costs of exporting to the US,” ING analysts wrote in a note.
On Monday, Trump announced additional military aid for Ukraine, and over the weekend, he reiterated plans to impose a 30% tariff on most imports from the EU and Mexico, effective on 1 August. This move is part of broader threats aimed at other countries. Such tariff risks pose a potential slowdown to global economic growth, which could weaken fuel demand and, in turn, push oil prices lower.
Meanwhile, Goldman Sachs (GS) raised its oil price forecast for the second half of 2025. The investment bank cited factors such as potential supply disruptions, declining oil inventories in OECD countries, and production constraints in Russia.
