Amid Trade Talks with Trump Administration.. Oil Prices Continue to Decline

SadaNews - Oil prices fell for the third session, as the pace of talks between the United States and its trading partners intensified ahead of the deadline next week.

Brent crude traded below $69 per barrel, while U.S. West Texas Intermediate stabilized around $67.

Negotiators from the European Union and the United States are heading into another week of intense discussions in an attempt to reach a trade agreement before August 1, the date by which U.S. President Donald Trump has threatened to impose tariffs of 30% on most of the bloc's exports.

Warren Patterson, head of commodity strategy at ING Group, stated, "As the tariff deadline approaches, risks are skewed to the downside," adding that "the expectation of a more abundant oil market later in the year bolsters the view that prices will continue to decline."

New European Sanctions and Divergent Views Among Allies

Last weekend, the European Union agreed on a new sanctions package against Moscow, which included reducing the price cap on Russian crude oil, imposing restrictions on refined fuel from Russian petroleum, and a ban on a large Indian refinery. The United Kingdom joined these efforts, while the United States has not yet followed suit.

U.S. Treasury Secretary Scott Piesen said the next round of talks with China may include discussions on Beijing's purchases of Russian and Iranian oil, which could hinder progress in the negotiations, given that Russia is the largest crude oil supplier to China.

Piesen added that Washington is leaning more towards a tariff-based strategy, imposing high tariffs on countries that buy Russian energy, pointing out that China and India are the largest buyers of oil from Moscow.

Increasing Pressure on Prices

Although Brent prices have trended upward this month, they are still down over 8% since the beginning of the year, amid fears that Trump's trade war could reduce consumption while the OPEC+ alliance is increasing supplies.

Prices are also affected by ongoing developments in the Middle East, as well as the expansion of sanctions imposed on crude oil from producers like Russia and Iran.