- WTI price remains under selling pressure near $62.90 in Friday’s early European session, down 0.45% on the day.
- Concerns over the impact of US tariffs on the global economy continue to undermine the WTI price.
- A bigger-than-expected draw in US crude inventories last week might cap the downside for WTI.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.90 during the early European trading hours on Friday. The WTI trades in negative territory for the seventh consecutive day and heads for the biggest weekly loss since June.
US President Donald Trump escalated tensions by targeting India with 50% tariffs and imposing 39% duties on Swiss exports to the US, while saying he’s “getting very close to a deal” with China. Higher US tariffs against many trade partners took effect on Thursday, fueling concerns over weaker global economic activity and sparking bearish sentiment among oil traders, which weighs on the WTI price.
Additionally, a potential meeting between Trump and Russian President Vladimir Putin contributes to the WTI’s downside, as it could impact tariffs related to Russian crude. Kremlin aide Yuri Ushakov said on Thursday that Trump and Putin would meet in the coming days in what would be the first summit between leaders of the two countries since 2021.
Nonetheless, oil prices find support from a larger-than-expected drop in US crude inventories. According to the Energy Information Administration, crude oil stockpiles in the US for the week ending August 1 fell by 3.029 million barrels, compared to a rise of 7.698 million barrels in the previous week. The market consensus estimated that stocks would decrease by 1.1 million barrels.
