Crude Oil Continues To Fall Amid Persisting Trade Uncertainty

(RTTNews) - Crude oil moved lower for a third-straight session on Tuesday as continuing uncertainty on tariff negotiations between the US and its trading partners has increased demand concerns.

Today, the WTI Crude Oil closed down by $0.99 to settle at $66.21 per barrel.

September month Brent Crude contract was last seen trading today, down by $0.77, to $68.44 per barrel.

As the deadline for the "reciprocal tariff" suspension period ends on August 1, with less than a fortnight in hand, countries are forcing themselves to arrive at a "good deal."

As US President Donald Trump has threatened to hit most of the EU bloc's exports with 30% tariffs, leaders are focused to avert the enormous levies. Reports suggest that the bloc is planning to retaliate if the ongoing talks fail.

A high-tariff regime could push up inflation and can result in low demand for oil and energy.

The International Energy Agency has projected a 3.7-million-barrel increase in daily refinery processing from May to August. During the same period, demand for power generation is expected to double to 9,00,000. IEA had forecast in that crude demand will grow by 7,00,000 bpd.

Earlier this month, the OPEC+ alliance had agreed to ramp up crude production by 5,48,000 barrels per day against market expectations of 4,11,000 bpd. OPEC's July forecast hinted at a demand increase by 1.29 million bpd in 2025.

Oil exports from Saudi Arabia, the major oil producer in the OPEC group, rose to a three-month high in May with 6.19 million barrels shipped out, an increase of 25,000 bpd.

Russia faces a 50-day deadline to strike a ceasefire deal with Ukraine or face US-imposed sanctions on its oil trade with other countries.

Analysts state that significant increase in supply will coincide with slowing oil demand after the peak summer season ends.

The US Energy Information Administration is scheduled to release the inventory data tomorrow. A clearer picture would emerge after the trade deals are finalized by the US in the second week of August.