summary
U.S. tariffs ending July 9th OPEC+ is expected to increase 411,000 bpd US crude stocks rise unexpectedly
(Reuters) – Oil prices have fallen slightly as US tariffs could revive and could raise demand concerns ahead of expected supply increases by major producers.
Brent crude futures fell 21 cents (0.3%) to $68.90 per barrel by 1217 GMT. The US West Texas intermediate crude 15 cents (0.2%) fell to $67.30.
Both contracts halted cooperation with the UN Nuclear Watch on Wednesday, reaching a weekly high on Wednesday, causing the prolonged conflict over the nuclear program could turn into an armed conflict again.
Reserve trade agreements between the US and Vietnam also raised prices.
However, tariff uncertainty increases. The 90-day suspension on the implementation of higher tariffs in the US ended on July 9th, with some large trading partners not yet putting together trade deals, including the European Union and Japan.
Meanwhile, the OPEC+ Oil Producer Group is expected to agree to raise 411,000 barrels per day (BPD) at this weekend’s policy meeting.
In addition to negative sentiment, private sector surveys showed that service activities in China, the world’s largest oil importer, expanded at the slowest pace in nine months in June as demand weakened and new export orders fell.
The surprising construction of US crude inventory also highlights concerns about demand from the world’s largest crude oil consumers.
The U.S. Energy Information Administration said Wednesday that domestic crude oil stocks rose by 3.8 million barrels last week to 419 million barrels. Analysts in the Reuters poll were hoping for a drawdown of 1.8 million barrels.
The market will monitor the US monthly employment report on Thursday. This is likely to shape expectations for the depth and timing of interest rate cuts by the Federal Reserve in the second half of the year, analysts said.
Lower interest rates could drive economic activity that will increase demand for oil.
Report by Ahmad Ghaddar Additional Report by Siyi Liu of Singapore Edited by David Goodman
Share this:
