WTI loses ground as rising trade tensions dampen global Oil demand.
The IEA reported that Saudi Arabia exceeded its Oil output target against OPEC+ implied target.
Traders expect Trump to announce further sanctions on Russia that may affect Oil supplies.
West Texas Intermediate (WTI) Oil price edges lower after registering more than 2.5% gains in the previous session, trading around $67.30 per barrel during the Asian hours on Monday. Crude Oil prices face challenges due to increasing Oil output in Saudi Arabia and ongoing tariff tensions dampening global Oil demand.
The International Energy Agency (IEA) reported that Saudi Arabia exceeded its Oil output target by 430,000 barrels per day in June and reached 9.8 million bpd, against the kingdom's implied Organization of the Petroleum Exporting Countries and its allies including Russia (OPEC+) target of 9.37 million bpd.
In response, Saudi Arabia's energy ministry noted that the kingdom had been fully adhered to its voluntary OPEC+ output target, reporting that Saudi marketed crude supply in June was 9.352 million bpd, in line with the agreed quota.
However, mixed Chinese trade balance data could provide mild support for the crude Oil as China is the largest Oil importer. Chinese Exports climbs 7.2% year-over-year in June, following 6.3% in April. Meanwhile, imports increased 2.3% YoY in the same period, recovering from a previous decline of 2.1%.
However, crude Oil prices gained ground due to expected further United States (US) sanctions on Russia that may affect global supplies. US President Donald Trump announced, on Saturday, a 30% tariff on imports from the European Union (EU) and Mexico starting August 1. Trump also proposed a blanket tariff rate of 15%-20% on other trading partners, an increase from the current 10% baseline rate. However, the European Union (EU) stated that it will extend its pause on retaliatory measures against US tariffs until early August, expecting to reach a negotiated agreement.
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