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Today, the WTI crude oil has settled $ 1.16 to $ 67.54 per barrel.
The September Month Brent crude contract was last seen trading from $ 0.80 to $ 69.32 per barrel.
Pressing them with tariffs focused on signing a favorable trade deals with American business partners, US President Donald Trump announced a high tariff for major economic powers for the past several days. Trump today optimically stated that agreements with India and Europe are going to be held soon.
Countries are quickly intensifying their approach to receiving a deal, as the August 1 time limit for the “mutual tariff” suspension period is shutting down.
Since the markets breathed a sigh of relief after the Israeli-Iran struggle ended on 24 June, the red-like attacks on two bulk carriers by Yemen’s Houthi rebel group last week gave rise to new, boiling tension in the Middle East. So far, the United States and West have avoided any harsh retaliation and therefore the situation and large situation remains calm.
A drone attack on Kurdistan targeted a Norwegian-powered oil and gas firm in Tauke in the Jakho administration area of Northern Iraq, which led to the suspension of production. The initial report indicates drones coming from areas under control by Iran -backed militia.
Last week, the International Energy Agency (IEA) stated that the increase in production was not leading to high inventions that reflected the high demand for oil due to the summer consumption season.
China’s crude throwput of June also increased by 8.5% year after year.
Saudi Arabia’s second quarter production increased to 9.8 million barrels per day – 700,000 BPD growth from May to June.
Yesterday, the US Energy Information Administration (EIA) reported that crude oil inventions in the US declined by 3.9 million barrels during the week ended July 11. Commercial stockpiles at 422.2 million barrels are about 8% below an average of five years for this time of the year.
High tariffs can recession the economy and thus hurt the demand for oil and energy, resulting in a fall in oil prices.
Analysts are of the opinion that oil prices may remain unstable in the minimum period until their impact on the final scale of the tariff and the global economy is felt by the markets and not absorbed.
In addition, if Hauthis proceed to American intervention with their attacks, the Middle East may be a hit with a growing supply and transit for long -term oil and energy trade. This can benefit oil prices.
The idea and opinion expressed here are the idea and opinion of the author and not necessarily Nasdac, Inc.
