Oil prices are falling as worries about the trade disputes between the US and EU raise concerns about fuel demand.
US-EU Trade Dispute
Oil prices fell for the third consecutive day as fears of an escalating trade dispute between the US and EU overshadowed fuel demand projections. As of 12:19 GMT, Brent crude futures were down 53 cents (0.8%) at $68.68 a barrel. Meanwhile, US West Texas Intermediate (WTI) crude was trading at $66.57 a barrel, down 63 cents (0.9%). Additionally, the White House has set a deadline of August 1 for trading partners to face tariffs or negotiate, adding to the market's uncertainty.
European Gas Market
European gas prices steadied after a three-day decline, with benchmark futures around €33 per megawatt-hour. Despite Europe making progress in filling its storage ahead of winter, competition for liquefied natural gas (LNG) supplies remains fierce. For instance, Egypt has ramped up its fuel imports following the launch of two floating LNG terminals.
IEA's Forecast for Global Gas Demand
A new outlook from the International Energy Agency (IEA) indicates that global gas demand is expected to rise by roughly 2% in 2026 as new LNG supplies ease market pressures. Following a slowdown this year, the IEA anticipates improved supply-demand balances, alleviating some of the tightness in the market.
In conclusion, the decline in oil prices and the stabilization of gas prices in Europe highlight the complex dynamics in energy markets amidst geopolitical uncertainties and changing demand.
