Crude oil futures saw little movement on Friday amidst a backdrop of mixed U.S. economic data and ongoing concerns about oil supplies in light of the European Union’s recent sanctions against Russia for its actions in Ukraine.
Brent crude futures dipped 0.3% to $69.28 a barrel, while U.S. West Texas Intermediate (WTI) crude futures also fell 0.3% to $67.34, resulting in both benchmarks ending the week down approximately 2%.
In the U.S., the housing market showed signs of weakness with single-family homebuilding hitting an 11-month low in June due to high mortgage rates and economic uncertainty. This could potentially lead to a contraction in residential investment for the second quarter. On a positive note, consumer sentiment improved in July, while inflation expectations continued to decline, making it easier for the Federal Reserve to consider interest rate cuts to stimulate economic growth and boost oil demand.
President Donald Trump’s push for minimum tariffs of 15% to 20% in any deal with the European Union also added to market uncertainty. The administration is considering reciprocal tariff rates exceeding 10%, potentially surpassing historical peaks and leading to inflation in the coming months.
Meanwhile, in Europe, the EU imposed additional sanctions on Russia over its actions in Ukraine, specifically targeting the country’s oil and energy sectors. The ban on importing petroleum products made from Russian crude could impact key importers like India and Turkey, potentially disrupting diesel supply into Europe.
In other news, U.S. oil major Chevron successfully closed its $55 billion acquisition of U.S. energy firm Hess after a legal battle with rival Exxon Mobil. This acquisition grants Chevron access to a significant oil discovery off the coast of Guyana.
Overall, the market remains cautious amidst geopolitical tensions and economic uncertainties, with investors closely monitoring developments in the oil industry and global trade dynamics.
This article was reported by Scott DiSavino in New York, with contributions from Robert Harvey and Enes Tunagur in London, and Siyi Liu in Singapore. Editing was done by Emelia Sithole-Matarise, David Goodman, Matthew Lewis, and Marguerita Choy.
