Oil prices close over 2% lower

Oil drilling rigs

Oil prices declined on Thursday, as markets assessed the impact of US President Donald Trump’s continued trade war on global economic growth and crude demand.

Brent crude futures for September delivery fell 2.21%, or $1.55, to settle at $68.64 per barrel.

Meanwhile, US WTI crude futures for August delivery dropped 2.65%, or $1.81, to $66.57 per barrel.

Oil markets were once again affected by trade tensions after Trump began notifying countries this week of upcoming tariffs on their goods, set to take effect on Aug. 1.

This comes despite renewed security risks in the Red Sea region, following the recent sinking of two vessels by the armed Houthi group.

OPEC+ raised its forecast for global oil demand in 2050 by around three million barrels to 122.9 million barrels per day (bpd), up from 120.1 million bpd in last year’s estimates.