NEWS

Oil prices fell for the fourth consecutive day during trading on Wednesday, July 23, as investors assessed developments in trade negotiations between the European Union and the United States after the United States and Japan reached an agreement on tariffs.

Brent crude futures fell 8 cents, or 0.12%, to $68.51 a barrel at settlement.

US crude futures also fell 6 cents, or 0.09%, to settle at $65.25 a barrel.

On Tuesday, both Brent and US crude fell about 1% after the European Union announced it was considering countermeasures to US tariffs.

Trade Developments

For his part, US President Donald Trump said on Tuesday that the United States and Japan had reached a trade agreement that includes reducing tariffs on US imports of Japanese cars and avoids new tariffs on other goods, in exchange for a $550 billion investment and loan package to be injected into the US economy.

Vandana Hari, founder of oil market analyst firm Vanda Insights, commented: “The price decline of the past three sessions appears to have subsided, but I don’t expect a significant price rally as a result of the US-Japan trade deal news, as reported delays and setbacks in talks with the EU and China will continue to weigh on market sentiment.”

In a related development, the European Commission is seeking to submit a proposal to impose retaliatory tariffs on €93 billion ($109 billion) worth of US goods for approval by EU member states to be implemented in the event of a failure to reach an agreement with the US.

Meanwhile, the Commission’s primary focus is on achieving positive results through negotiations with the US to avoid the imposition of 30% US tariffs on European exports.

Andrew Lipow, president of Lipow Oil Associates, commented: "The trade agreement with Japan could serve as a model for trade agreements with other countries. On the other hand, the market remains concerned about the US reaching an agreement with the EU and China."

European Trade Commissioner Maros Sefcovic was scheduled to speak with US Commerce Secretary Howard Lutnick on Wednesday, before briefing EU ambassadors on developments in the negotiations.

The Financial Times reported that the EU and the US are close to reaching a trade agreement that could include a 15% tariff on US imports from Europe. Both sides will waive tariffs on certain products, including aircraft, spirits, and medical devices, according to sources cited by the report.