Oil Dips on Output, Tariff Fears
Oil prices fell below the key $70 mark last week, pressured by increased OPEC+ output and renewed U.S. tariff threats under former President Donald Trump.
Brent crude settled at $68.60 per barrel on July 18, down 2% for the week, while WTI dropped 2.3% to $66.
OPEC+ production rose by 349,000 barrels per day (bpd) in June, fueling surplus concerns despite steady demand projections. Analysts say the market is under pressure as supply outpaces demand expectations, CE Report quotes Anadolu Agency
Trump’s July 12 announcement of sweeping 30% tariffs on EU imports, effective August 1, added to demand worries.
Analysts expect prices to hover between $66–$70 per barrel. “Macroeconomic risks and oversupply dominate,” said Neil Crosby of Sparta. “The risk still leans to the upside due to geopolitical tensions like Iran.”
Primary Vision’s Osama Rizvi noted that U.S. producers remain resilient due to low breakeven costs, adding, “Prices may briefly cross $70, but will average around $66–$68 for the rest of the year.”
FGE’s Palash Jain echoed the view, pointing to short-term upside potential capped by trade uncertainty.
