Oil settles lower as trade tensions ease

Oil drilling rigs

Oil prices closed lower today, July 23, as concerns about a slowdown in global economic growth eased after the US reached a trade agreement with Japan and reports emerged of progress in tariff talks between the US and the European Union.

Brent crude futures for September delivery fell 0.12%, or 8 cents, to settle at $68.51 a barrel.

US West Texas Intermediate (WTI) crude futures for September delivery slipped nearly 0.10%, or 6 cents, to $65.25 a barrel.

This came after US President Donald Trump announced a trade agreement with Japan, which includes setting tariffs at 15%, in addition to Tokyo's investment of $550 billion in the US.

Furthermore, press reports indicated that ongoing negotiations between the US and the European Union are making progress towards setting tariffs on imports from the bloc at 15%.

The negative performance of black gold was limited by the release of official data showing that US crude inventories fell by 3.2 million barrels last week, compared to expectations of a decline of 800,000 barrels.