On Friday, concerns about reduced oil supplies from Iraq gave way to worries about a potential decline in energy demand due to uncertainty surrounding US tariff policy, as reported by Reuters. Consequently, oil prices changed little after rising in the previous session.
Brent and WTI rose by $1 on Thursday after a series of turbulent days in Iraqi Kurdistan led to the suspension of nearly half of the region's oil production. Seasonal travel demand also supported the market. In the first two weeks of July, global oil consumption averaged 105.2 million barrels per day (bpd). This figure is 600,000 bpd higher than a year earlier, according to JPMorgan analysts.
However, uncertainty over the final US tariff policy is putting pressure on the market. The situation is exacerbated by major oil producers' plans to cancel output cuts, which will lead to increased supply as the peak demand season in the Northern Hemisphere comes to an end. This week, Brent and WTI prices have fallen by more than 1%.