Oil Prices Dip as Trade War Fears Weigh on Demand Outlook

PUKMEDIA

Oil prices.

Oil prices fell on Tuesday, 22 July 2025, amid mounting concerns that escalating trade tensions between the United States and the European Union could dampen global economic growth and weaken fuel demand.

According to Reuters, Brent crude futures dropped by 52 cents, or 0.75%, to $68.69 a barrel by 03:25 GMT. U.S. West Texas Intermediate (WTI) crude declined 51 cents, or 0.76%, to $66.69. Both benchmarks had settled slightly lower on Monday.

The August WTI contract expires on Tuesday, with the more actively traded September contract down 54 cents, or 0.82%, to $65.41 a barrel.

Investor sentiment remains cautious, as the prospect of a full-blown trade war between major economies weighs on market confidence. The U.S. has threatened to impose a 30% tariff on EU imports by 1 August unless a trade agreement is reached, prompting the EU to consider retaliatory measures.

Although supply concerns have eased following a ceasefire between Israel and Iran on 24 June 2025 and increased production by major oil producers, the overall economic outlook remains fragile. Rising output from OPEC and its allies is also contributing to downward pressure on prices.

A weaker U.S. dollar has offered limited support for crude, making oil more affordable for buyers using other currencies.



PUKMEDIA