Crude oil prices remained under pressure this week as markets weighed progress in global trade negotiations 2025 against underlying concerns about future energy demand. The U.S. benchmark West Texas Intermediate (WTI) settled at around $65.25 per barrel, while Brent crude hovered near $68–69, continuing a subdued trend now in its fourth straight session.
The cautious sentiment stems largely from the approaching August 1 deadline for new U.S. tariffs on imports from the European Union and India. While investors were briefly encouraged by recent agreements between the U.S. and Japan—featuring a reduction in proposed tariffs and a significant investment pledge—negotiations with other partners remain uncertain. The potential for unresolved disputes to disrupt global trade has dampened oil demand expectations and kept traders on edge.
U.S. Crude Drop Offers Limited Optimism in global trade negotiations 2025
Despite these headwinds, oil prices found brief support from the latest U.S. Energy Information Administration (EIA) report. Data for the week ending July 19 revealed a larger-than-expected decline of 3.17 million barrels in crude stockpiles—nearly twice the anticipated drawdown of 1.6 million barrels.
The drawdown brought U.S. crude inventories to about 9% below the five-year seasonal average, reflecting tighter supply conditions that briefly lifted both WTI and Brent prices. Gasoline stocks also fell by 1.7 million barrels, while distillates rose by 2.9 million barrels, painting a mixed picture of fuel demand.
In response, oil futures recorded a modest uptick in Asian trading. WTI crude rose to $65.45, and Brent climbed to $68.69, each gaining around 0.3% intraday. However, analysts caution that these gains are fragile and likely short-lived without more clarity on trade developments.
Trade Uncertainty Limits Upside Potential
Market participants remain highly sensitive to global trade developments. While the U.S.–Japan deal provided a momentary lift, stalled talks with the EU and India have reignited fears of tariff escalations. According to Reuters, these unresolved global trade negotiations 2025 negotiations 2025 are weighing heavily on oil futures, with Brent falling $1 to $68.39, and WTI shedding $1.05 to settle at $66.15.
Investors were also digesting recent macroeconomic data. Stronger-than-expected growth reports from the U.S. and China helped temper fears of an economic slowdown. Yet, with the August 1 deadline fast approaching and no firm resolution in sight, traders are reluctant to take aggressive positions, keeping prices within a narrow band.
Oil prices are currently navigating a delicate balance. On one side, falling U.S. inventories signal tightening supply, while on the other, trade uncertainty threatens to weaken global trade negotiations 2025 demand. Until clearer resolutions emerge on the geopolitical front, analysts expect oil to trade sideways with limited volatility. The market’s next move will likely depend on whether global trade partners can strike timely deals before fresh tariffs take effect.
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