Oil prices fall amid trade uncertainty
Oil prices fell on Tuesday, as futures contracts for West Texas Intermediate crude (WTI) fell to about 65.6 dollars per barrel, recording a third consecutive losing session.
This decline comes against the backdrop of uncertainty surrounding the US-EU trade negotiations, which may affect the outlook for global energy demand.
The impact of trade tensions on oil markets
Investors are following the trade talks between Washington and Brussels this week, as the two sides seek to avoid an escalation of the trade war before the deadline of August 1, the date on which US President Donald Trump threatened to impose tariffs of 30% on most EU exports.
If these tariffs are implemented, this could lead to a slowdown in economic growth in Europe, which will negatively affect global oil demand.
Ignoring European sanctions on Russia
Despite the introduction of new European sanctions on Russian energy exports, the market largely ignored them, as analysts believe that their impact on global supplies will be limited.
Investors seem to be focusing more on factors affecting demand, such as a possible economic slowdown due to trade disputes, rather than any supply disruptions.
Revival of Iran nuclear talks
Iran announced on Monday its intention to resume nuclear talks with European powers this week in a bid to revive the 2015 nuclear deal.
The success of these negotiations may lead to the lifting of sanctions on Iranian oil exports, which increases the global supply and puts additional downward pressure on prices, and vice versa if these negotiations fail, which may push oil to rise again.
Short-term forecast: continued downward pressure
In the absence of strong demand catalysts, oil is currently moving towards a further slight decline.
However, any sudden developments in trade or nuclear negotiations could quickly change the landscape.
