Oil prices fall as supply concerns ease after Trump gives Russia a 50-day deadline.
Brent crude oil futures closed down $0,50, while U.S. crude oil futures fell $0,46.
NEW YORK (Reuters) - Oil prices fell less than 1% on Tuesday after US President Donald Trump set a 50-day deadline for Russia to end the war in Ukraine and avoid sanctions, easing concerns about a possible immediate disruption in supply.
Brent crude oil futures closed down $0,5, or 0,7%, at $68,71 a barrel. U.S. West Texas Intermediate (WTI) crude oil futures closed down $0,46, or 0,7%, at $66,52.
"The focus has been on Donald Trump. There was some fear that he might attack Russia with sanctions immediately, and now he's given another 50 days," said UBS commodities analyst Giovanni Staunovo. "Those fears about an imminent further tightening of the market have dissipated. That's the main story."
Oil prices rose on the threat of sanctions, but later gave back those gains, as the 50-day deadline increased hopes that sanctions could be avoided.
If the proposed sanctions are implemented, "this would drastically change the outlook for the oil market," ING analysts said in a note.
"China, India, and Turkey are the largest buyers of Russian crude oil. They would need to weigh the benefits of buying Russian crude oil at a discount against the cost of exporting it to the US," said ING.
Trump announced new weapons for Ukraine on Monday and said on Saturday that he would impose a 30% tariff on most imports from the European Union and Mexico starting August 1, adding to similar warnings issued to other countries.
Tariffs increase the risk of slower economic growth, which could reduce global demand for fuel and lower oil prices.
