Oil Prices Dip on US-EU Trade Tensions, OPEC+ Output Rise

Oil prices have been under pressure due to a combination of factors including rising OPEC+ output, particularly from Saudi Arabia, and concerns about slowing global economic growth amid escalating trade tensions between the U.S. and the European Union. The U.S. plans to impose tariffs on EU imports starting August 1, while the EU is preparing countermeasures, contributing to uncertainty around fuel demand growth. Although the recent ceasefire in the Israel-Iran conflict eased supply disruption fears, the market remains cautious due to ongoing trade disputes and increased crude supply. EU sanctions on Russian oil, part of the 18th package targeting Russia over the Ukraine conflict, are expected to have minimal impact as Russia has adapted to previous sanctions, and the EU's import ban on refined Russian oil products faces enforcement challenges. Iran's upcoming nuclear talks with European nations also add to geopolitical uncertainties that indirectly affect oil markets. Overall, oil prices have declined slightly, with experts suggesting that without new catalysts, prices may continue to face downward pressure despite some support from a weaker U.S. dollar.