The financial markets are grappling with a confluence of significant developments today, ranging from a sharp downturn in oil prices to ongoing international trade tensions and domestic economic policy disputes.
Crude oil benchmarks saw a notable drop, with Brent Crude Oil Futures closing at $69.67 per barrel, marking a $2.03 or 2.83% decline. Similarly, US Crude Oil Futures settled at $67.33 per barrel, down $1.93 or 2.79%. This decline comes amidst a backdrop of shifting global supply and demand dynamics and broader market volatility. Analysts are closely watching for further catalysts, including OPEC+ strategy and upcoming US economic data, to determine future price direction.
Trade relations between the United States and Canada continue to be a focal point, with the chief Canadian negotiator confirming that "conversations with Americans are continuing" and "the doors aren't closed" regarding ongoing trade talks. This comes as a critical August 1st deadline for new tariffs has passed, with President Trump having previously threatened to increase tariffs on some Canadian exports to 35%. The Canadian side is seeking further meetings with US Commerce Secretary Howard Lutnick later in August, indicating that a resolution is not yet imminent.
In corporate news, ExxonMobil (XOM) is reportedly considering scaling back its ambitious hydrogen and low-carbon plans. This potential shift is attributed to the new tax bill and its implications for tax credits, particularly concerning "blue" hydrogen projects that utilize natural gas with carbon capture. The company has emphasized that tax credits are crucial for achieving financial returns on major projects, such as its proposed Baytown, Texas facility, which aims to be one of the world's largest low-carbon hydrogen production plants.
Meanwhile, Starbucks (SBUX) is looking to enhance its operational efficiency and customer experience by planning the introduction of kiosks at its airport locations. This initiative aims to reduce long lines and improve service, following the company's broader efforts to streamline its menu and improve in-store operations.
Domestically, US stocks experienced further declines after President Donald Trump directed his team to fire Erika McEntarfer, the Commissioner of the Bureau of Labor Statistics. This directive followed the release of a weaker-than-expected July jobs report, which showed only 73,000 nonfarm payrolls added, and significant downward revisions to May and June numbers, totaling 258,000 fewer jobs than previously reported. President Trump questioned the accuracy of the numbers, labeling McEntarfer a "Biden Political Appointee" and stating she would be replaced with a "more competent and qualified person."
Adding to the market's complexity, Goldman Sachs had advised clients to buy copper just a day before its price dropped. While Goldman Sachs had previously raised its copper price forecasts and viewed recent dips as a "buying opportunity" due to strong demand from China, the market saw a significant plunge in US copper prices after President Trump announced 50% tariffs on imports of certain copper products, while exempting refined metal. This unexpected exemption triggered a record plunge for US prices, causing a collapse in the premium of US prices over the London Metal Exchange.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.