New york: Oil prices fell as the dollar strengthened and confidence that the United States will reach agreements with its major trading partners declined before next week’s deadline. West Texas Intermediate crude fell more than 1% to settle near $65 a barrel on Friday evening after US President Donald Trump said the United States had a 50-50 chance of striking a trade deal with Europe, contrary to the optimism expressed by the bloc’s diplomats this week.

According to National Iraqi News Agency, Trump also stated that most tariff rates have now stabilized, and the effective tariff rate in the United States is now at its highest level in a century, posing a potential threat to energy demand. In another context, Trump indicated that he does not intend to dismiss Federal Reserve Chairman Jerome Powell, which strengthened the dollar and made commodities priced in the currency less attractive.

Crude oil remained stable this month, but is lower this year as increased supply from OPEC+ exacerbates fears of an impen
ding supply glut. The group will meet on August 3 to decide on production levels. On Thursday, Venezuela, an OPEC member, was granted a production reprieve under a US decision allowing Chevron to resume pumping oil in the country.