WTI price rises to $66.15 in Friday’s early Asian session.
Simmering tensions in the Middle East and strong summer demand boost the WTI price.
Tariff uncertainty might cap the WTI’s upside.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $66.15 during the early Asian trading hours on Friday. The WTI edges higher amid renewed geopolitical tensions in the Middle East, raising concerns about tighter global oil supplies.
Reuters reported late Thursday that a drone attack on Kurdistan targeted a Norwegian-operated oil and gas firm in the Tawke, Zakho administration area of northern Iraq, leading to a suspension of production. At this time, the US has refrained from any major counterattacks. Therefore, the situation remains relatively peaceful. Any signs of escalation in this region could raise fears of tight global supply, which might provide some support to the WTI price.
US crude oil inventories fell last week, suggesting robust summer demand. The US Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the US for the week ending July 11 fell by 3.859 million barrels, compared to a rise of 7.07 million barrels in the previous week. The market consensus estimated that stocks would decline by 1.8 million barrels.
Nonetheless, the uncertainty caused by US President Donald Trump’s tariff war might cap the upside for the WTI price. Trump said on Wednesday that he intends to send a letter telling more than 150 trade partners what tariff rate they will face. High tariffs could slow down the economy and thereby hurt oil and energy demand, weighing on the oil prices.
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