Oil is trading in a narrow range amid US demand control and Trump's plans for tariffs

Limited volatility in oil prices amid market assessment of economic data

Oil prices saw limited trading today within a narrow range, fluctuating between minor gains and losses.

This decline in momentum comes amid a state of anticipation on the part of investors who are assessing the strength of US demand for fuel, and are waiting for updates on US trade plans led by Donald Trump.

The Fed indicates an improvement in economic activity, but with caution

The US Federal Reserve released a periodic report on the performance of the US economy in which it showed signs of recovery over the past weeks, with a relative improvement in business activity.

But the report was not without caution, noting that many companies are beginning to feel the effects of higher tariffs, causing increased costs and a possible impact on final prices for consumers, which is reinforcing the climate of uncertainty about the path of inflation and growth.

China's oil production records strong growth

On the other hand, Chinese data showed an 8.5% increase in crude oil production in June compared to last year, indicating a rise in domestic demand for fuel.

These data reinforce the positive outlook on global oil demand, but this was not enough to push prices to high levels, as concerns related to global trade persist.

Trump shuffles the deck with new tariffs

Markets are still following the political moves by US President Donald Trump, who announced his plan to impose new tariffs by sending official letters to more than 150 countries, including the new prices for imported goods.

The move raises widespread fears of a return to the trade tensions that prevailed in his previous term, which could affect global supply chains and, consequently, the stability of energy prices.

 

In the end, despite positive data on US economic activity and strong demand from China, oil prices are still confined within a narrow range, with the absence of strong catalysts for sharp movements.

Investors focus remains on US trade policy developments and their potential impact on the global economy, which may clarify the course of oil prices in the coming weeks.