Crude oil prices ended the week lower as markets responded to diminishing prospects for a trade agreement between the United States and Europe, alongside indications of increasing global supply. ANZ analysts indicated that market sentiment deteriorated following US President Donald Trump’s remarks downplaying the likelihood of securing trade deals with key partners before the August 1 deadline, assigning only a “50-50” chance to an agreement with Europe. Trump also stated that most tariffs are “essentially settled,” with Budgetlab estimates suggesting US consumers now face an average effective tariff rate of 20.2 per cent, the highest since 1911.
The White House’s decision last week to authorise Chevron to restart oil production in Venezuela further intensified the downward pressure on prices. The previous restrictions on US imports of Venezuelan crude had effectively been in place until now, and the resumption of production raises worries about a potential oversupply in the market.
Adding to supply side concerns, OPEC is also considering boosting output. The OPEC Joint Ministerial Monitoring Committee is scheduled to convene this week in advance of the full OPEC+ meeting on August 3. During this meeting, members are anticipated to discuss the possibility of completely reversing last year’s voluntary cuts of 2.2 million barrels per day, potentially leading to a significant increase in supply as early as September.
Brent Crude Oil was last recorded trading at $US68.43 per barrel.
