Crude Oil Prices Tumble Ahead Of Trump’s Tariff Deadline: Here’s What Experts Say

Crude oil prices declined by more than 1% on Tuesday after President Donald Trump reignited trade tensions as the White House stated that more tariff letters could be sent out before the August 1 deadline.

At the time of writing, U.S. West Texas Intermediate (WTI) crude futures were down 1%, falling to $65.28 per barrel, compared to the previous closing price of $66.05.

Brent crude futures declined 1.01%, falling to $68.51 per barrel.

The United States Oil Fund LP (USO) fell 0.67%, while the ProShares Ultra Bloomberg Crude Oil (UCO) declined 1.02% at the time of writing.

Stocktwits data showed the retail sentiment around USO and UCO was in the ‘bearish’ territory at the time of writing.

The White House's reiteration of the tariff threat also led to a decline in investor sentiment, as evidenced by the SPDR S&P 500 ETF (SPY), which declined 0.1% at the time of writing.

"Oil prices fell for a third straight session ... as urgency builds in trade negotiations between the U.S. and its partners," Soojin Kim, an analyst at bank MUFG, said in a note, according to a Reuters report.

On the other hand, analysts at ING believe that the latest European Union sanctions against Russia have had a minimal impact on crude oil prices.

“It’s important to point out that while the EU has lowered the price cap, the G-7 cap remains unchanged. The EU would need to get the US on board to lower the cap,” the firm said in a recent note, adding that the G-7 price cap has not been as effective due to the shadow fleet of Russian oil tankers.

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