Oil prices weakened on Friday (July 25th) and closed at a three-week low as traders worried about negative economic news from the US and China and signs of increasing supply.

The losses were limited by optimism that a US trade deal could boost global economic growth and future oil demand.

Brent crude futures fell 74 cents, or 1.1%, to $68.44, while US West Texas Intermediate (WTI) crude fell 87 cents, or 1.3%, to $65.16.

This was the lowest closing level for Brent since July 4th and WTI since June 30th. For the week, Brent fell about 1% while WTI fell about 3%. European Commission President Ursula von der Leyen will meet with US President Donald Trump on Sunday in Scotland. EU officials and diplomats have said they hope to reach a trade framework agreement later this week.

The eurozone economy remains resilient amid widespread uncertainty stemming from the global trade war, a raft of data showed on Friday, even as European Central Bank policymakers appeared to temper market speculation that further interest rate cuts would be avoided.

In the US, new orders for US-made capital goods unexpectedly fell in June while shipments of such products rose modestly, suggesting that business spending on equipment slowed significantly in the second quarter.

Trump said he had a good meeting with Federal Reserve Chairman Jerome Powell and got the impression that the US central bank chief may be ready to cut interest rates. Lower interest rates reduce consumer borrowing costs and can boost economic growth and oil demand.

In China, the world's second-largest economy, fiscal revenue fell 0.3% in the first six months from a year earlier, the Finance Ministry said, maintaining the rate of decline seen between January and May. (alg)

Source: Reuters