Oil Holds Loss As Trade Negotiations Intensify Before Deadline

Oil was little changed after two modest declines as talks between the US and its trading partners gain urgency ahead of next week’s deadline.

International benchmark Brent traded near $69  a barrel while West Texas Intermediate was around $67. European Union and US negotiators are heading into another week of intensive discussions as they seek to clinch a trade deal by Aug. 1, when President Donald Trump has threatened to hit most of the bloc’s exports with 30% tariffs.

Late last week, the EU agreed on a package of sanctions against Moscow, including a lower price cap on the country’s crude, curbs on fuels made from Russian petroleum and a ban on a large refinery in India. The UK joined the efforts, but the US hasn’t followed suit. 

US Treasury Secretary Scott Bessent said the next round of talks with China could include a discussion of Beijing’s purchases of Russian and Iranian oil. That could hamper progress, as Russia is the Asian nation’s biggest source of crude. 

Bessent said Washington was more likely to pursue a tariff-based strategy that would impose hefty duties on countries it found to be purchasing Russian energy. China and India are the biggest buyers of oil from Moscow.

Brent has trended higher this month, but is still down more than 7% this year as Trump’s trade war threatens consumption and OPEC+ increases production. Prices have been whipsawed by developments in the Middle East, as well as ever-expanding sanctions on crude from producers including Russia and Iran. 

Prices:

• Brent for September settlement shed 0.3% to $68.99 a barrel at 8:46 a.m. in Singapore

• WTI for August delivery, which expires Tuesday, declined 0.3% to $66.99 a barrel

  • The more active September contract slipped 0.3% to $65.72 a barrel.