Market Speak: Oil prices slip in July amid trade and geopolitical tensions- OPEC

The recent monthly update released by OPEC shared that crude oil futures eased slightly in July as choppy trading reflected a tug-of-war between bearish macro signals and resilient physical market strength. Prices faced pressure from escalating US trade tariffs targeting key partners like India, Canada, and Brazil, along with geopolitical uncertainty in Eastern Europe. Weak US non-farm payroll data and the lowest seasonal gasoline demand since 2020 dampened demand prospects, while US crude inventories rose by 7.7 million barrels through late July. However, downside momentum was curbed by strong spot market premiums in the North Sea and optimism over demand recovery in the second half of 2025, supported by the EIA?s cut to its US crude output forecast.

Powered by Commodity Insights