Oil Falls as US Trade Deal Optimism Wanes, Dollar Strengthens

Oil fell as the dollar strengthened and conviction waned that the US will reach agreements with key trade partners ahead of a deadline next week.

West Texas Intermediate crude slid more than 1% to settle near $65 a barrel after President Donald Trump said the US has a 50-50 chance of striking a trade deal with Europe, a contrast to the optimism the bloc’s diplomats expressed this week. Trump also said most tariff rates are essentially settled now. The effective US tariff rate is at the highest in a century, by some estimates, a potential threat to energy demand.