Crude oil futures faced a decline for the second consecutive day, with initial gains from fears of sanctions on Russia diminished by President Trump's softened approach. The announcement of a 50-day deadline for Russia to end its involvement in Ukraine tempered supply disruption concerns. Tariffs on imports from the EU and Mexico added to uncertainty regarding economic growth, affecting demand expectations. OPEC+ has increased production significantly since 2023, potentially leading to lower oil prices unless production adjustments occur after September. However, elevated refinery activity and strategic crude stockpiling in China may offer market support.
Crude oil futures declined for a second day as early gains from fears of sanctions on Russia faded following US President Trump's milder stance on Moscow.
President Trump announced a 50-day deadline for Moscow to cease its involvement in Ukraine, easing immediate concerns regarding supply disruptions.
In response to tariffs on imports from the EU and Mexico, uncertainty surrounding economic growth has overshadowed demand prospects, contributing to subdued oil prices.
OPEC+ has been ramping up production, reversing much of the voluntary cuts from 2023, which could push oil prices lower unless adjustments are made after September.
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