Oil prices were little changed on Tuesday (July 15) after U.S. President Donald Trump's lengthy 50-day deadline for Russia to end its war in Ukraine and avoid sanctions eased immediate supply concerns.

Brent crude rose 1 cent to $69.22 a barrel at 12:01 GMT. U.S. West Texas Intermediate crude fell 7 cents to $66.91.

"The focus is on Donald Trump. There were concerns he might soon impose sanctions on Russia, and now he's given another 50 days," said UBS commodities analyst Giovanni Staunovo. "Concerns about imminent additional tightening in the market have eased. That's the main news."

Oil prices briefly rose on the potential sanctions but then weakened as the 50-day deadline raised hopes that sanctions could be avoided. If Trump actually follows through and the proposed sanctions are implemented, "it would drastically change the oil market outlook," analysts at ING said in a note on Tuesday.

"China, India, and Turkey are the largest buyers of Russian crude. They need to weigh the benefits of buying Russian crude at a discount to the cost of their exports to the US," the ING note said. Trump announced new weapons for Ukraine on Monday and had already said on Saturday that he would impose 30% tariffs on most imports from the European Union and Mexico starting August 1, adding similar warnings for other countries.

The tariffs raise the risk of slower economic growth, which could reduce global fuel demand and put downward pressure on oil prices. China's economy slowed in the second quarter, data showed on Tuesday, with the market bracing for a weaker second half as exports lost momentum, prices continued to fall, and consumer confidence remained low.

Tony Sycamore, an analyst at IG, said China's economic growth was above consensus, mainly due to strong fiscal support and increased production and exports to avoid US tariffs. "Today's disappointing Chinese data has direct implications for commodities, including iron ore and crude oil," he said. Elsewhere, oil demand is expected to remain "very strong" through the third quarter, maintaining market balance in the short term, the Secretary General of the Organization of the Petroleum Exporting Countries (OPEC) said, according to Russian media reports. (alg)

Source: Reuters