Brent fell to $68.5 amid concerns about global demand

Oil prices declined on Tuesday due to the growing concerns of market participants about the prospects for the global economy. Traders fear that the escalation of trade disputes, including between the United States and the European Union, will lead to a weakening of global business activity and, as a result, reduce demand for energy resources.

September Brent crude futures on the London ICE Futures Exchange fell by 1.03% and are trading at $68.5 per barrel. On Monday, Brent ended trading at $69.21. WTI crude futures for September delivery on the New York Mercantile Exchange fell to $65.29 per barrel. The day before, they dropped to $65.95.

Market sentiment was affected by media reports that US President Donald Trump has tightened his position in negotiations with the European Union, demanding a reduction in duties to 15-20%. In response, the European authorities plan to agree on a package of retaliatory measures this week, which will be applied in the event of a failure of negotiations.

According to analysts, concerns about the prospects for demand continue to grow, especially against the background of mutual threats of new duties and the approach of the deadline set by the United States – August 1. An additional pressure factor is the expectation of an increase in oil supply in the second half of the year.