Tariff deadline exerted downward pressure on crude

Crude oil prices retreated on Thursday, ending a two-day rally as investor sentiment turned cautious ahead of the United States’ 1 August tariff deadline. Uncertainty surrounding countries yet to finalise trade agreements with Washington added pressure to the market.

Brent crude fell 71 cents, or 0.97%, to settle at $72.53 a barrel.

WTI declined 74 cents, or 1.06%, to $69.26.

The US administration announced updated tariff rates on Thursday night, with Canada and Switzerland among the most heavily affected. However, the extension of an existing trade agreement with Mexico helped limit the downside in oil prices.

Rising inflation in the United States, driven in part by higher tariffs on imported goods such as household furniture and recreational products, is adding to speculation that the Federal Reserve may delay cutting interest rates until at least October.

Written: Farid Muzaffar