Oil extended losses amid deadlock in US–EU trade deal talks

Crude oil prices extended their decline on Tuesday, falling for a third straight session amid persistent doubts over a potential US–EU trade deal. The escalating tension has dampened investor sentiment and revived fears of an economic slowdown across major oil markets.

Brent crude dropped by 62 cents, or 0.9%, to settle at $68.59 per barrel.

WTI fell 99 cents, or 1.5%, to $66.21.

Market anxiety intensified after US President Donald Trump reiterated the August 1st deadline for countries to conclude trade agreements or face tariffs. He has warned of a 30% levy on EU goods should talks fail to yield a resolution. In response, the European Union has explored broader retaliatory measures, but progress remains limited.

“The tariff factor seems to be taking the spotlight as the US deadline approaches,” one analyst observed, highlighting growing pessimism in the energy markets.

Elsewhere, hopes for a last-minute deal between the US and India appear to be fading, compounding the downbeat mood. Still, analysts caution that downside in crude may be capped if Washington opts to delay or soften its tariff measures to avoid economic disruption.

Written: Farid Muzaffar