WTI price drifts higher to near $64.90 in Monday’s Asian session.
Optimism over the US-EU trade deal underpins the WTI price.
Growing surplus fears might cap the WTI’s upside.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $64.90 during the Asian trading hours on Monday. The WTI edges higher as the European Union (EU) agrees to the United States (US) trade deal ahead of the deadline. Traders will keep an eye on the American Petroleum Institute (API) weekly crude oil stock report, due later on Tuesday.
The WTI price climbs after the US and EU agreed on a trade deal that sets a blanket 15% tariff on goods traded between them ahead of US President Donald Trump’s tariff deadline of August 1. The 15% tariff rates will take effect on August 1. Easing fears that Trump’s tariff policies will impact global economic growth and oil demand might support the black gold in the near term.
US and Chinese officials are set to meet on Monday for trade talks, and the South China Morning Post reported on Sunday that both countries are expected to extend their tariff truce. These positive developments might contribute to the WTI’s upside as the US and China are the world’s largest oil consumers.
On the other hand, concerns over an impending supply glut could weigh on the WTI. The International Energy Agency (IEA) and the US Energy Information Administration (EIA) forecast a surplus of oil next year, with the IEA projecting a surplus of 2 million barrels a day, the largest surplus since the pandemic.
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