In its monthly oil market report, the International Energy Agency (IEA) stated that after demand in the second quarter fell short of expectations, it has lowered its demand growth forecast from the previous estimate of 720,000 barrels per day , with demand buoyed by peak summer refinery activity to meet travel and power generation needs.
Earlier this week, President Trump announced a 50% tariff on imports from Brazil. On Thursday, he further unsettled markets by declaring a 35% tariff on imports from Canada, set to take effect next month. The rest of the United States’ trade partners will face blanket tariffs ranging from 15% to 20%.
U.S. energy firms reduced the number of operating oil and natural gas rigs for the 11th consecutive week, according to energy services firm Baker Hughes.
Attacks on Israeli commercial vessels and those of its allies in the Red Sea continue. In the latest incident, the ship Magic Seas sank after being targeted by Yemeni armed forces for violating the ban on entering Israeli ports.

Another indication of strong short-term demand is Saudi Arabia’s plan to ship around 51 million barrels of crude to China in August.
Meanwhile Saudi Arabia’s energy ministry confirmed that the kingdom has remained fully compliant with its voluntary OPEC+ output target on Friday.
OPEC+ is expected to ramp up production quickly and significantly, raising concerns about potential oversupply. However, analysts noted that oil prices remain supported in the near term.
The European Union, which is preparing another round of sanctions against Russia, is considering a floating price cap on Russian crude in response to volatile oil prices. Russia, however, stated that it has ample experience in handling and minimizing such challenges.
The American Petroleum Institute (API) estimated that U.S. crude oil inventories rose sharply in the week ending July 4, increasing by 7.1 million barrels — defying analysts’ expectations of a 2.8-million-barrel draw.
Export bitumen prices increased in most parts of the worldover the past week. Bitumen demand remained steady across Northern Europe and was firm in the Nordic countries, supported by consistent imports of bitumen. Export bitumen cargo prices in the Rotterdam and Baltic regions rose by $17, reaching $472/t and $464/t, respectively.
Mediterranean bitumen cargo availability was limited due to a shortage of vessels and some supply constraints, even as the paving season gathered pace toward its summer peak.These cargoes were also priced at $421/t, reflecting a $17 increase.
Despite reduced demand in the region due to the rainy season, cargo prices for West African destinations rose to $614/t. In contrast, prices in the East saw only a modest increase of $1, reaching $500/t.
Singapore bitumen prices continued to rise due to tight supply.The price of these cargoes reached $42/t, reflecting a $7 increase.
The price of Iran’s bulk bitumen cargoes also reached $321/t.