Oil Falls 3rd Day as U.S.-EU Tariff Deadline Looms

- U.S.-EU trade tensions continue to pressure oil prices downward. - European natural gas stabilizes, while the IEA projects global LNG supply will rise 7% by 2026. On July 22, 2025, Reuters reported that oil prices slid for a third consecutive day. Escalating trade tensions between the United States and the European Union pressured prices ahead of an August 1 tariff deadline. Concerns over reduced fuel demand drove down both Brent crude futures and U.S. West Texas Intermediate (WTI) crude. These declines reflect market fears of a potential economic slowdown. By 12:19 GMT on Tuesday, Brent crude futures dropped 53 cents to $68.68 a barrel, while WTI crude fell 63 cents to $66.57. Analysts attribute these declines to uncertainty surrounding U.S. trade policies. The White House has signaled it will impose a 30% tariff on EU goods unless new trade agreements are reached by August. In response, the EU outlined countermeasures. This move intensified concerns of a trade dispute and rattled already-nervous markets. Additionally, a recent survey indicates U.S. domestic oil inventories fell by approximately 600,000 barrels during the third week of July. However, this stockpile decline failed to counterbalance negative sentiment from geopolitical and economic uncertainties. As a result, global fuel demand prospects remain shaky. Meanwhile, European natural gas markets showed signs of stabilization after a three-day price dip. By Tuesday, benchmark natural gas futures traded at approximately €33 per megawatt-hour, reflecting a pause in volatility. Market participants are weighing Europe’s progress in replenishing gas reserves against competition for liquefied natural gas (LNG) from other regions. In a report released on July 22, the International Energy Agency (IEA) projected a 7% increase in global LNG supply by 2026. This represents the most significant annual growth since 2019. The IEA expects new developments in the United States, Qatar, and Canada to drive this expansion. The agency also forecasts that current market pressures will slow LNG consumption growth to 1.3% by late 2025. However, it anticipates a recovery to around 2% in 2026. The agency expects the expanded supply will ease constraints and revive demand. As of 12:00 UTC on July 22, cryptocurrency markets showed a mixed performance. According to CoinMarketCap, Ethereum (ETH) traded at $2,179, a 1.8% drop in 24-hour volume. In contrast, Bitcoin (BTC) saw a slight gain, trading at $29,384 with a 0.5% increase in 24-hour volume. Other major cryptocurrencies also showed varied trends during the trading session.