Oil prices fell marginally to around $66.50 as West Texas Intermediate crude faced a 2.1% decline on Monday. The drop followed doubts among traders about US President Donald Trump’s plan to pressure Moscow, questioning its effect on Russian exports. The strengthening dollar added pressure, making commodities less appealing.
Trump’s Trade Deal
Trump announced a trade deal with Indonesia on social media, but details remain undisclosed. The deal contributed to the dollar’s rise, impacting commodities priced in dollars.
Concerns and Tariffs
Trump’s strategy to influence Russia into a ceasefire with Ukraine didn’t include energy infrastructure. This led to a reduction in fears and a subsequent drop in oil prices. The US plans to impose 100% tariffs on Russia if the conflicts persist within 50 days.
Market Pressure and Supply
Investors liquidated positions in WTI’s prompt spread before contract expiry, causing fluctuations in oil prices. The focus is now on supply dynamics as OPEC responds to claims of overproduction.
Price Forecast
Despite ongoing trade tensions, Goldman Sachs raised Brent’s price forecast to $66, citing lower stockpiles in developed countries. However, concerns about oversupply loom, impacting oil prices.
Global Trends
In Asia, strong refinery activities in China hint at increased demand. However, market participants view this as a preemptive move against potential tariffs, not as sustainable growth in demand.
Oil prices continue to fluctuate, with West Texas Intermediate for August delivery currently at $66.69 a barrel, reflecting the evolving market conditions.
Read more about the latest updates on oil prices and market trends here.
