WTI Crude Oil Slides to $67 on Rising US Stockpiles, Tariff Fears

WTI Crude Oil Slides to $67 on Rising US Stockpiles, Tariff Fears

West Texas Intermediate (WTI) crude oil fell to around $67.15 during Thursday’s early Asian session, pressured by a sharp build in US oil inventories and escalating tariff-related concerns.

EIA Reports Sharp Rise in US Crude Inventories

The US Energy Information Administration (EIA) reported that crude oil stockpiles rose by 7.070 million barrels for the week ending July 4, 2025, marking the largest increase since January. This surprise surge follows a 3.835 million barrel build the previous week, and sharply contrasts market expectations of a 2 million barrel draw.

The sudden rise in inventories signals potential weakness in demand, which has triggered bearish sentiment in oil markets.

Tariff Threats Add Pressure to Oil Prices

Adding to the downside pressure, US President Donald Trump on Wednesday issued a new wave of tariff demand letters, targeting copper imports with a 50% tariff and hinting at fresh levies on semiconductors. These measures threaten to disrupt global trade, raising concerns about slowing economic growth and lower energy demand.

Geopolitical Tensions Offer Limited Support

Despite the bearish fundamentals, Red Sea tensions and Middle East-related geopolitical risks may act as a cushion against deeper losses for WTI. Traders remain alert to any escalation that could impact supply routes or production.

Market Outlook: What to Watch

Oil market participants are closely watching:

• Weekly EIA reports for continued inventory trends
• Developments in US trade policy
• Geopolitical risks, particularly in key oil transit zones
• Economic data that could influence energy demand forecasts