WTI Crude Rises to $65.50 After US Stockpile Drop, But Tariff Concerns Limit Gains

WTI Crude Rises to $65.50 After Inventory Drop, But Tariff Fears Limit Gains

West Texas Intermediate (WTI) crude oil prices climbed to $65.50 during early Thursday Asian trading, rebounding after three consecutive days of losses. The rally follows a sharper-than-expected drop in US crude inventories, signaling tighter market conditions.

US Crude Inventories Fall by 3.859 Million Barrels

According to the latest report from the U.S. Energy Information Administration (EIA), US crude stockpiles declined by 3.859 million barrels in the week ending July 11. This is well above the expected draw of 1.8 million barrels and contrasts sharply with the previous week’s build of 7.07 million barrels.

The surprise drawdown suggests a possible tightening in oil supply, giving WTI prices a bullish push after recent weakness. However, broader economic concerns could cap the upside.

Trump's Tariff Threats Cloud the Outlook

Despite the bullish inventory data, markets remain cautious due to mounting trade tensions. U.S. President Donald Trump announced that he would notify over 150 trading partners about potential tariff changes. He indicated that 10% to 15% tariffs could be applied to smaller economies.

These developments raise fears of a global economic slowdown, which would likely suppress energy demand and limit further gains in oil prices.

Short-Term Boost, Long-Term Caution

While lower inventories provide short-term support for oil prices, ongoing trade disputes and uncertainty about global economic growth may restrict any sustained rally. Investors will be watching closely for new data and policy moves to gauge the direction of WTI in the coming weeks.

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