Oil prices fall due to US tariff uncertainty and expected OPEC+ output increase

Oil prices fell slightly on Thursday as concerns over U.S. tariffs impacting energy demand overshadowed expected supply increases. Brent crude settled at $68.80 a barrel, while WTI dropped to $67. Trade uncertainty looms, with a pause on tariffs ending soon and OPEC+ planning to raise output by 411,000 barrels per day.

A U.S.-Vietnam trade deal boosted prices, but overall tariff unpredictability remains. Service activity in China slowed, impacting demand. U.S. crude inventories unexpectedly rose by 3.8 million barrels, signaling demand worries. Energy firms cut oil rigs by seven to 425, the lowest since September 2021, indicating potential future output changes.

U.S. job growth was solid in June, but private sector gains slowed due to industry tariff concerns. Federal Reserve may maintain a wait-and-see approach on interest rates. Iran suspending cooperation with the U.N. nuclear watchdog raised conflict fears. New U.S. sanctions on Iran and Hezbollah had limited market impact, as past efforts haven’t succeeded.

Read more at Yahoo Finance: Oil prices ease on US tariff uncertainty ahead of expected OPEC+ output boost