WTI Drops to $65.65 on Fears of Rising Global Oil Supply and US-EU Tariff Risks

WTI Drops to $65.65 on Fears of Rising Global Oil Supply and US-EU Tariff Risks

July 22, 2025 – Tredu News

West Texas Intermediate (WTI), the US benchmark crude oil, fell to around $65.65 during early Tuesday trading in the Asian session. The price decline reflects growing market concerns over a potential global oil supply glut, coupled with looming US-EU trade tariffs that are capping crude’s upward momentum.

Kurdistan Oil Exports Resume After Two-Year Hiatus

The Iraqi government has officially resumed crude oil exports from the Kurdistan Region, suspended since 2023. The restart is expected to ease tensions between Baghdad and Erbil, while increasing Iraq’s national oil output by up to 230,000 barrels per day (bpd). This added supply could pressure WTI prices further in the short term as markets adjust to higher global availability.

EU Sanctions Russian Crude, While Tariff Risks Loom

The European Union has rolled out new sanctions on Russian crude oil, restricting supplies to the bloc. However, this is being offset by increased flows from other regions like Iraq.

Meanwhile, the United States is set to impose tariffs on EU imports starting August 1. While US Commerce Secretary Howard Lutnick remains hopeful for a resolution, the uncertainty continues to limit bullish momentum in energy markets.

Eyes on API Crude Oil Inventory Report

Traders now await the release of the American Petroleum Institute (API)’s weekly crude oil inventory report, due later Tuesday. A larger-than-expected build in inventories could further weigh on oil prices.

Key Points:

• WTI crude falls to $65.65 amid rising supply concerns.
• Iraq resumes Kurdistan exports after two years.
• EU sanctions reduce Russian crude flow.
• US-EU trade tensions increase risk for commodities.
• API stock report awaited for fresh price direction.

Suggested Internal Links for Tredu.com:

• What Triggers a Global Oil Supply Glut?
• US-EU Trade Relations and Their Impact on Commodities
• Understanding API vs EIA: Oil Inventory Data
• Iraq’s Role in the Global Oil Market