WTI drops to near $66.50 due to renewed tariff threats, rising OPEC+ supply

• WTI price depreciates as President Trump announced new tariffs of up to 40% on 14 countries.

• OPEC+ decided to raise Oil production by 548,000 barrels per day in August.

• Yemen's Houthis attacked a bulk carrier in the Red Sea, saying the vessel sank.

West Texas Intermediate (WTI) Oil price loses ground after registering more than 2% gains in the previous session, trading around $66.60 per barrel during the European hours on Tuesday. Crude Oil prices fall as renewed United States (US) tariff threats bolster concerns about the global Oil demand.

US President Donald Trump renewed his threat of a 25% tax on imports from Japan and South Korea and shared a batch of other letters to world leaders warning of levies from 1 August. Trump also imposed 25% rates on Malaysia, Kazakhstan and Tunisia, 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%.

The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, decided on Saturday to raise Oil output by 548,000 barrels per day in August. The decision surpasses the previous Oil increase of 411,000 bpd made three months ago and effectively reverses nearly all of the 2.2 million bpd in voluntary cuts previously implemented by the group. Reuters cited five familiar sources, saying that the Oil group prepares to approve an increase of about 550,000 bpd for September when it meets on August 3.

However, the downside in Oil prices may be limited due to renewed geopolitical risks, following a second attack by Yemen's Houthis on a bulk carrier in the Red Sea. Reports indicate the vessel sank, raising concerns over potential disruptions to critical shipping routes. On Monday, a drone strike on a Greek-managed ship left two crew members injured and two others missing.