Khaberni -Oil prices dropped on Tuesday amid concerns about a slowdown in business activity affecting the growth of fuel demand amid the escalating trade war between the United States and the European Union, the main consumers of crude oil.
Brent crude futures fell 52 cents or 0.75% to $68.69 a barrel by 03:25 GMT.
The price of West Texas Intermediate crude in the United States was at $66.69 a barrel, down 51 cents or 0.76%.
The West Texas Intermediate crude contract for August expires on Tuesday, and the more active September contract dropped 54 cents or 0.82% to register $65.41 a barrel.
Priyanka Sachdeva, senior market analyst at Philip Nova, said, "Concerns about demand continue amid escalating global trade tensions, especially as the markets await the latest threats of tariffs between major economies and potential announcements by Trump before the August 1 deadline."
She added that "investors are also monitoring the cascade effects of new U.S. sanctions on Russian crude oil."
Supply concerns have significantly eased thanks to increased production from major producers, and since the ceasefire on June 24 that ended the conflict between Israel and Iran.
The weakness of the dollar provided some support for crude amid a relative decrease in what buyers who use other currencies pay.
Tony Sycamore, market analyst at IG, noted in a memo that prices had fallen "as trade war concerns offset support from the weaker dollar."
Sycamore pointed to the possibility of an escalation in the trade dispute between the United States and the European Union over tariffs.
According to diplomats from the European Union, the EU is exploring a broader range of potential retaliatory measures against the United States as the chances of reaching an acceptable trade deal with Washington diminish.
The United States threatened to impose tariffs of 30% on Union imports on August 1 if no agreement is reached.
