Oil prices fell on Tuesday, amid uncertainty about global economic expectations in the wake of the trade agreement between the United States and the European Union, and in light of the investors awaiting the interest rate decision from the Federal Reserve.
Brent crude futures fell 6 cents, or 0.1 percent, to $ 69.98 a barrel by 04:25 GMT, while US West Texas Intermediate crude reached $ 66.60, a decrease of 11 cents, or 0.2 percent.
While US crude oil futures settled at an altitude of more than 2 percent in the previous session, Brent crude touched its highest level since July 18 (July) on Monday.
Despite the imposition of the trade agreement between the United States and the European Union, customs duties of 15 percent on most of the European Union goods, it exceeded a comprehensive trade war between the two main allies that would have extended to nearly a third of world trade and negatively affect the expectations of fuel demand.
The agreement also provides for the purchases of the European Union of US Energy at a value of $ 750 billion in the coming years, an amount that analysts say is almost no opportunity to achieve it, while European companies are scheduled to invest $ 600 billion in the United States during President Donald Trump’s second term.
While the completion of the trade agreement between the United States and the European Union, it was a relief to global markets amid a state of increased uncertainty, the timetable and the targeted monuments of the investments are unclear, according to the “EN Z” analysts in a note, and who said: “We believe that the rate of 15 percent will constitute the opposite winds of the expectations of the growth of the euro area, but it is unlikely to pay Economy to recession. ”
Meanwhile, senior economic officials from the United States and China in Stockholm met on Monday, to hold talks that lasted for more than 5 hours to resolve long -term economic conflicts that are the axis of a trade war between the two largest economies in the world. The discussions are expected to resume on Tuesday.
Participants in the oil market are also awaiting the meeting of the US Open Market Committee on July 29 and 30, where it is widely expected that the Federal Reserve will maintain interest rates unchanged, but it may indicate a tendency to a facilitation policy amid indicators of slowing inflation, according to Bianca Sashdiva, the chief market analyst at the Philip Nova mediation company.
“The momentum is likely to climb in the short term, but the market is exposed to the fluctuations caused by the surprises of the central banks, or the collapse of commercial negotiations,” Sashdiva added. The possibility of an economic slowdown and the reduced federal reserve for interest rates remains uncertain, which limits high oil prices.
Meanwhile, on Monday, Trump set a new period of “10 or 12 days” for Russia to make progress towards ending the war in Ukraine, otherwise it will face sanctions. He threatened to impose sanctions on both Russia and its exports buyers unless progress is made.
