Oil Prices Fall Up to 3% This Week Amid Uncertainty Over Trade
European Commission President Ursula von der Leyen is scheduled to meet with U.S. President Donald Trump on Sunday in Scotland.
Quick overview
- Oil prices fell to their lowest levels in three weeks due to disappointing economic data from the U.S. and China, along with increasing supply.
- Brent crude futures dropped 1.1% to $68.42 per barrel, while West Texas Intermediate (WTI) declined 1.4% to $65.12.
- The decline in oil prices is attributed to a decrease in new orders for core capital goods in the U.S. and a drop in China's fiscal revenue.
- Washington is reportedly preparing to allow Chevron and other partners to resume limited operations in Venezuela, impacting market dynamics.
Oil prices dropped to their lowest levels in three weeks on Friday, pressured by disappointing economic data from the United States and China, as well as signs of increasing supply—despite optimism around potential trade deals that could boost global economic growth and oil demand.
Brent crude futures fell 76 cents, or 1.1%, to $68.42 per barrel as of 11:44 a.m. Mexico City time, while West Texas Intermediate (WTI) crude in the United States declined 91 cents, or 1.4%, to $65.12.
The drop put Brent on track for its lowest close since July 4, and WTI heading for its weakest finish since June 30. Over the week, Brent fell nearly 1%, while WTI dropped around 3%.
European Commission President Ursula von der Leyen is scheduled to meet with U.S. President Donald Trump on Sunday in Scotland, as EU officials and diplomats say they expect to reach a framework trade agreement over the weekend.
In the United States, new orders for core capital goods unexpectedly declined in June, while shipments rose only moderately—indicating that business spending on equipment likely slowed sharply in the second quarter.
Meanwhile, in China—the world’s second-largest economy—fiscal revenue dropped 0.3% in the first half of the year compared to the same period in 2024, according to the Ministry of Finance, continuing the trend seen between January and May.
Adding to the market dynamics, Washington is reportedly preparing to allow PDVSA’s partners—starting with U.S. oil giant Chevron—to resume limited operations in Venezuela, according to sources cited on Thursday.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save