Oil prices fly down. All because of US commercial talks

Oil prices continue to decrease on the New York Nymex Fuel Exchange. A barrel of West Texas Intermediate (WTI) in contracts in August currently costs $ 66.60, which means a 0.89 percent decrease. Also, Brent oil, valued for September at the ICE London Stock Exchange, decreased to $ 68.67 per barrel, which is a 0.78 percent discount.

The United States negotiates

The market dynamics is influenced by increasing United States commercial negotiations with key partners. Diplomatic activities will intensify before the schedule of conversations scheduled for August 1. The White House confirmed that President Donald Trump may send further notifications regarding duties before this date, as well as sign new trade agreements.

On Monday, a spokeswoman for the White House Karoline Leavitt said that conversations may end with specific decisions before August.

Turmoil on the markets

In this context, the Filippine President Ferdinad Marcos Jr. is preparing to meet Donald Trump in the oval office, who expressed the desire to achieve a commercial agreement with the USA. At the same time, talks are underway between representatives of the European Union and the American side. The EU is trying to conclude a contract before August 1, when the US announced the possibility of introducing 30 % duties to a significant part of exports from Europe.

Experts emphasize that tensions around duties and upcoming decisions can cause additional turmoil on the markets, including on the oil market. According to Warren Patterson, the head of the raw material strategy at ING Groep NV, the upcoming date of the introduction of duties increases the risk to the markets. In addition, the anticipated increase in oil supply in the second half of 2025 may conducive to further drops in raw material prices. Although Brent records an increase in a month, from the beginning of 2025 its value has already dropped by about 8 percent.