Oil Prices Fall Amid Trade Tariff Deadline, OPEC+ Output Hike

Crude oil prices declined marginally due to weak spot demand and concerns over the looming August 1 tariff deadline set by U.S. President Donald Trump, which has created uncertainty for countries yet to negotiate trade deals with the U.S. Brent crude and West Texas Intermediate (WTI) futures fell as investors braced for additional tariffs on nations without agreements, including India, Brazil, and Canada, which could stoke inflation and dampen oil demand. The U.S. has extended a trade deal with Mexico for 90 days, continuing negotiations, but the overall tariff environment remains negative for oil demand growth. Meanwhile, U.S. crude inventories unexpectedly rose, signaling abundant supply, while OPEC+ plans to increase production further, adding downward pressure on prices. Sanctions on Russia and Iran continue to influence the market, with the U.S. threatening secondary tariffs on Russia's trading partners if the war in Ukraine does not end soon, affecting major importers like India and China. Despite sanctions and geopolitical tensions, ample supply and weak demand fundamentals are expected to keep oil prices under pressure in the near term.