The prices of the two oil grades were slightly down on Friday amid mixed US economic and tariff news and worries about oil supplies following the European Union’s latest sanctions against Russia for its war in Ukraine.
Brent crude futures fell by 24 cents or 0.3 per cent to settle at $69.28 a barrel and the US West Texas Intermediate (WTI) crude futures declined by 20 cents or 0.3 per cent to end at $67.34 per barrel.
For the week, the two crude oil benchmarks went down by about 2 per cent.
In the US, data suggested that residential investment contracted again in the second quarter after single-family homebuilding dropped to an 11-month low in June as high mortgage rates and economic uncertainty hampered home purchases.
In another report, however, US consumer sentiment improved in July, while inflation expectations continued to decline.
Lower inflation should make it easier for the US Federal Reserve to reduce interest rates, which could cut consumers’ borrowing costs and boost economic growth and oil demand.
US President Donald Trump is pushing for a minimum tariff of 15 per cent to 20 per cent in any deal with the European Union (EU), adding that the administration is now looking at a reciprocal tariff rate that exceeds 10 per cent, even if a deal is reached.
Market analysts noted that in coming months, the tariffs should increasingly be manifest in inflation Rising inflation can raise prices for consumers and weaken economic growth and oil demand.
In Europe, the EU reached an agreement on an 18th sanctions package against Russia over its war in Ukraine, which includes measures aimed at dealing further blows to Russia’s oil.
The EU also said it will no longer import any petroleum products made from Russian crude, though the ban will not apply to imports from Norway, Britain, the US, Canada and Switzerland. India is the biggest importer of Russian crude followed by China while Turkey is the third-biggest.
However, investors doubt President Trump will follow through with his threats, and that new European sanctions will be no more effective than previous attempts.