WTI trades with caution around $64.00 as tariff deadline approaches

• The Oil price trades cautiously around 64.00 as investors turn cautious ahead of completion of 90-day tariff pause on July 9.

• An increase in Fed dovish bets is expected to provide some relief to the Oil price.

• This week, the Oil price plummeted after the Israel-Iran ceasefire.

West Texas Intermediate (WTI), futures on NYMEX, exhibit a sluggish performance slightly above the two-week low of $63.73 From Wednesday. The Oil price trades cautiously near its immediate lows on persistent global demand concerns due to the tariff policy announced by United States (US) President Donald Trump since his return to the White House.

The uncertainty surrounding the US tariff policy is expected to escalate further as the deadline of the 90-day pause on the imposition of reciprocal tariffs will end on July 9. Washington provided an almost three-month relief on the tariff policy to negotiate bilateral deals with its trading partners. However, the White House seems to have failed to capitalize on the tariff relief as it has closed only one deal with the United Kingdom (UK), with which its business is moderate.

The Oil price bleed at the start of the week after US President Trump announced a ceasefire between Israel and Iran, which dismissed fears of the closure of Strait of Hormuz, a passage for almost a quarter of global oil supply.

Meanwhile, traders increasing bets supporting interest rate cuts from the Federal Reserve (Fed) this year could provide some relief to the Oil price. Fed dovish bets have increased as Donald Trump is expected to announce Fed Chair Jerome Powell’s successor for not supporting interest rate cuts. Investors expect decisions from Trump’s contender would be biased towards his economic agenda.

Analysts at Societe Generale said, “The market is pricing in President Trump appointing someone who at least at first sight appears more sympathetic to his cause.”