Crude Oil Prices Fall Amid US-EU Trade Tensions, Weak Demand

Crude oil prices have declined for several consecutive sessions amid escalating trade tensions between the United States and its trading partners, particularly the European Union, with President Donald Trump warning of potential tariffs ahead of the August 1 deadline. U.S. West Texas Intermediate crude futures fell to around $65 per barrel, reflecting bearish investor sentiment influenced by fears that the trade war could dampen global fuel demand and economic growth. Analysts note that while recent EU sanctions on Russia have had minimal impact on oil prices, the looming tariffs and trade negotiations are driving market uncertainty. Additionally, China is expected to see its oil demand peak by 2027 due to increased domestic production and a significant shift towards electric vehicles, signaling a long-term reduction in its reliance on foreign oil imports. This shift in Chinese demand, combined with global trade tensions, suggests substantial implications for future global energy markets. Meanwhile, local commodity markets in India also reflected the global trend with decreases in crude oil and cottonseed oil cake futures amid weak spot market demand.