Oil prices eased during Asian trade on Tuesday as concerns over global economic growth and uncertainty surrounding the recently finalised United States-European Union trade deal weighed on sentiment.
Investors also turned their focus to the upcoming U.S. Federal Reserve interest rate decision.
By 3:10 pm AEST (5:10 am GMT), Brent crude slipped 8 cents, or 0.1%, to US$69.96 per barrel, while U.S. West Texas Intermediate crude fell 9 cents to US$66.62 per barrel.
Both benchmarks had gained more than 2% in the prior session, with Brent briefly touching its highest level since 18 July.
While the new U.S.-EU trade agreement imposed a 15% import tariff on most European goods, it helped avert a broader trade conflict that could have impacted nearly a third of global trade and threatened global fuel demand.
In a note, ANZ analysts said, “We think the 15% rate will pose headwinds to the euro area’s growth outlook but is unlikely to push the economy into recession.
“For the U.S., an average import tariff rate of around 16–18% appears likely.”
Elsewhere, top economic officials from the United States and China met in Stockholm on Monday for over five hours in a renewed attempt to resolve longstanding trade tensions. Talks are expected to continue on Tuesday.
Investors are also closely watching the U.S. Federal Reserve, which begins its two-day policy meeting on 29 July. Markets widely expect the Fed to hold interest rates steady.
Meanwhile, President Trump proposed a new deadline for Russia to make progress in ending the war in Ukraine, warning that without tangible results within 10 to 12 days, additional sanctions could be imposed, including measures targeting buyers of Russian oil.
