Oil Prices Decline Amid Growing Concerns of Global Economic Slowdown

Oil prices fell during Tuesday's trading on July 22, influenced by increasing concerns over the global economic growth slowdown amidst rising trade tensions between the United States and the European Union, the world's largest crude consumers.

Brent crude recorded a 1% decrease to reach $68.52 per barrel, while West Texas Intermediate crude dropped to $66.51 per barrel, marking a 1.03% decline. The futures contract for West Texas Intermediate for September _the most traded_ decreased by 0.82% to settle at $65.41 per barrel.

Economic expert Brianca Sashdifa from "Phillip Nova" pointed out that markets are still under pressure from concerns related to the global demand decline, especially with the ongoing trade tensions between major economic powers. She added: "Markets are anticipating any new measures for imposing tariffs, especially from the U.S. administration as the deadline approaches on August 1st".

Several factors contributed to strengthening the downward trend, including easing concerns about supplies after an increase in production by major producers, as well as the impact of the ceasefire between Israel and Iran in June last year. On the other hand, the weakness of the U.S. dollar helped mitigate the depth of the declines, as the decline in the greenback reduced purchasing costs for holders of other currencies.

Financial analyst Tony Sickamore from "IG" warned that trade war concerns overshadowed the positive impact of the weak dollar, expressing concern about the possibility of escalating trade disputes between Washington and Brussels. His warnings came alongside U.S. threats to impose a 30% tariff on European imports starting from next August if negotiations fail.

On the other hand, European diplomatic sources revealed that the European Union is considering a broader package of countermeasures in response to U.S. policies, amidst European officials' pessimism about the possibility of reaching a negotiated solution that satisfies both parties.

The energy sector remains cautiously watchful, as markets balance between the risks of global demand slowdown and stable supply flows, while geopolitical and trade tensions threaten to keep prices under the pressure of sharp fluctuations in the near future.