NEW YORK: Crude oil futures were little changed on Friday on mixed US economic and tariff news and worries about oil supplies following the European Union’s latest sanctions against Russia for its war in Ukraine.
Brent crude futures fell 24 cents, or 0.3%, to settle at $69.28 a barrel, while US West Texas Intermediate (WTI) crude futures fell 20 cents, or 0.3%, to end at $67.34. That put both crude benchmarks down about 2% for the week.
In the United States, single-family homebuilding dropped to an 11-month low in June as high mortgage rates and economic uncertainty hampered home purchases, suggesting residential investment contracted again in the second quarter.
In another report, however, US consumer sentiment improved in July, while inflation expectations continued to decline. Lower inflation should make it easier for the US Federal Reserve to reduce interest rates, which could cut consumers’ borrowing costs and boost economic growth and oil demand. Separately, US President Donald Trump is pushing for a minimum tariff of 15% to 20% in any deal with the European Union, the Financial Times reported on Friday, adding that the administration is now looking at a reciprocal tariff rate that exceeds 10%, even if a deal is reached.
“Currently envisioned reciprocal tariffs, coupled with announced sectoral levies, could push the US effective tariff rate above 25%, surpassing 1930s peaks.
In coming months, the tariffs should increasingly be manifest in inflation,” analysts at US bank Citigroup’s Citi Research said in a note. Rising inflation can raise prices for consumers and weaken economic growth and oil demand.
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