Oil declines with investors evaluating the provisions of customs duties
Oil prices witnessed a decline of 1% at the settlement today, Thursday, despite the previous increase, in light of the investor evaluation of the repercussions of an American judicial ruling related to the customs fees imposed by President Donald Trump.
Brent crude futures fell by 1.2% to $ 64.15 a barrel, while US West Texas Intermediate crude decreased by 1.5% to $ 60.94 a barrel.
The market is currently awaiting the imposition of possible US sanctions on Russian oil and OPEC+ about increasing oil production in July.
On the other hand, oil prices witnessed a previous increase after the issuance of an American judicial decision regarding Trump’s overthrow of his powers to impose customs duties. Despite this decision, fees continued on some sectors such as heavy industries and cars. Experts commented that there is still a lack of certainty about these drawings.
In the same context, Fateh Birol, Executive Director of the International Energy Agency, pointed out that the demand for oil is weakened by the slowdown in the Chinese economy and unclear developments in Russia and Iran, according to his statements to Bloomberg. On the other hand, US negotiations with Iran are continuing to reduce its nuclear activities, which have accelerated since Washington’s withdrawal from the nuclear agreement.
On the side of supplies, some sources indicate that OPEC+ may agree to increase production by 411 thousand barrels per day in light of its attempt to defend its market share.
Speaking of the American influence, US Energy Information Administration data showed a sudden decrease in crude oil stocks by 2.8 million barrels, which restored some of the market.
