Global oil markets closed the week ending July 18 with a marginal decline in prices, as traders weighed competing signals around supply disruptions and economic uncertainty. Brent crude, the global benchmark, dipped to $69.39 per barrel — down 0.9% from the prior week’s close of $70.01.
The U.S. West Texas Intermediate (WTI) benchmark followed a similar trajectory, settling at $66.83 per barrel, reflecting a 1% week-on-week drop from $67.56.
Though Friday’s trading session saw prices recover slightly — spurred by geopolitical tensions in the Middle East and fresh EU sanctions on Russia — the overall trend remained bearish. The week started with upward momentum, fueled by supply concerns and expectations of a more dovish U.S. monetary policy, but this was quickly tempered by broader macroeconomic developments.
U.S. President Donald Trump’s remarks about imposing 100% tariffs on Russian goods heightened global trade worries, adding further pressure to crude demand projections. Additionally, higher-than-anticipated U.S. inflation data reduced hopes of a swift interest rate cut by the Federal Reserve — a move that would typically support oil prices.
Rising interest rates generally strengthen the dollar, making oil more expensive for foreign buyers and curbing demand globally. Meanwhile, the oil supply outlook turned uncertain after drone strikes targeted Iraqi oil installations, damaging infrastructure and fanning fears of broader regional instability.
Also rattling the market was a new sanctions package introduced by the European Union, targeting over 100 Russian vessels — including those operating under what officials referred to as Moscow’s “shadow fleet” — and placing a ban on imports from Nord Stream pipelines.
The dual impact of military conflict and regulatory restrictions is keeping energy markets on edge as traders watch for further disruptions and policy signals in the coming days.
