WTI edges lower below $67.00 on stronger US Dollar, OPEC+ oversupply concerns
WTI price loses ground to near $66.85 in Tuesday’s early Asian session.
The White House said that Trump has signed an executive order pushing the tariff implementation deadline from July to August 1.
Geopolitical risks in the Middle East might cap the downside for the WTI.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $66.85 during the early Asian trading hours on Tuesday. The WTI price edges lower amid oversupply concerns triggered by the July 6 Organization of the Petroleum Exporting Countries and allies (OPEC+) meeting.
OPEC+ agreed on Saturday to hike their collective crude production by 548,000 barrels per day (bpd), as they continue to unwind a set of voluntary supply cuts. This is faster than the 411,000 bps expected. The group previously announced hikes of 411,000 bpd for May, June, and July, already three times faster than scheduled. Oversized output hikes have raised concerns about oversupply, which could undermine the WTI price in the near term.
Additionally, the stronger Greenback after US President Donald Trump announced the latest round of tariff policies could weigh on the USD-denominated commodity price as it makes crude oil more expensive for foreign buyers. The White House said late Monday that Trump has signed an executive order pushing the tariff implementation deadline from July to August 1.
The Trump administration announced levies of 25% on goods from Japan and South Korea, while South Africa would see a 30% tariff, and Laos and Myanmar would face a 40% levy. Other nations hit with levies included Indonesia with a 32% rate, Bangladesh with 35%, and Thailand and Cambodia with duties of 36%.
Nonetheless, escalating geopolitical tensions in the Middle East, a globally significant region for oil production, might help limit the WTI’s losses. Israel stated late Sunday that the country’s military had attacked Houthi targets at three ports and a power plant in Yemen. Defence Minister Israel Katz confirmed the attack, saying they were carried out due to repeated attacks by the Iranian-backed rebel group on Israel.
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