Oil prices fell in Asian trade on Tuesday as traders priced in little impact on global supplies from European sanctions against Russia, while signs of a brewing U.S.-EU trade conflict also weighed.
Crude prices took little support from a weaker dollar, even as the greenback sharply pared its recent gains.
Brent oil futures for September fell 0.5% to $68.86 a barrel while West Texas Intermediate crude futures fell 0.5% to $65.61 a barrel by 21:15 ET (01:15 GMT).
US-EU trade war jitters grow Oil markets were on edge over a brewing trade war between the U.S. and European Union, as recent reports pointed to continued disagreements over tariff levels.
Washington was seen demanding at least a 15% tariff on EU goods, catching Brussels off guard and drawing calls for retaliatory tariffs on American goods.
Analysts at ANZ warned that the “trade deal impasse could hurt economic activity and thus crude oil demand,” especially if the U.S. pursues relatively high tariffs against the EU.
The EU tariffs, along with levies against a host of other major U.S. trading partners, are set to take effect from August 1, which has been described as a “hard deadline” by White House officials. The proposed duties include a 25% levy on Japan, a 35% tariff on Canada, and a 50% duty on Brazil.
The steep tariff levels have also spurred concerns over their potentially disruptive effects on the global economy, which could in turn hurt oil demand.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. EU-Russia sanctions seen having little bearing Oil prices also took little support from the EU imposing stricter sanctions against Russia’s oil industry, with ANZ analysts stating that there was “little hope” that the new sanctions would ultimately impact Moscow’s oil exports.
The new sanctions were related to the Russia-Ukraine war, which showed little signs of slowing even as the U.S. and its allies continued to clamor for a ceasefire.
The conflict has now stretched on for over three years. While it had initially pushed oil prices to near record highs, markets have since greatly priced out any potential supply shocks stemming from the conflict.
But strict U.S. sanctions on Russia’s oil industry remain.
