Amid concerns about global trade, the oil price appears susceptible near the weekly low of about 65.00.
The price of oil may be impacted by indications of growing trade tensions between the US and the EU.
As the effects of Trump's tariffs have begun to drive up inflation, traders reduce their bets on a dovish Fed.
In the late Asian trading session on Wednesday, West Texas Intermediate (WTI) futures on the NYMEX are trading cautiously at $65.70. Due to ongoing concerns over global trade, investors are still unsure about the demand for energy, which causes the price of oil to fluctuate close to the weekly low.
Uncertainty over international trade harmony has been raised by the United States' (US) declaration of retaliatory tariffs on 17 other countries as well as its top trading partners, including the European Union (EU), Japan, Canada, Mexico, and South Korea.
22 countries have been hit with tariffs by US President Donald Trump for not reaching a trade agreement during the 90-day reciprocal levy delay. In the meantime, if it is unable to reach an agreement with the US before the new deadline of August 1, the EU has also prepared appropriate remedies. Trump has previously threatened to increase duties if any economy retaliates, thus the EU's introduction of countermeasures on US goods might exacerbate trade tensions.
In the meantime, growing inflationary pressures in the US as importers begin to pass on the effects of tariffs to consumers have cast doubt on the Federal Reserve's (Fed) decision to lower interest rates at its September policy meeting, which would be bad for the price of oil.
As anticipated, the Consumer Price Index (CPI) report for June revealed on Tuesday that the prices of certain US-imported goods increased significantly, causing headline inflation to spike to 2.7% annually.
Market analysts have cautioned that the impact of President Trump's further levies on countries has not yet been determined, and that the current pricing pressures are a rare reflection of sectoral tariffs. This would enable Fed officials to request additional time to evaluate how tariffs affect inflation.
The price of oil may be impacted by indications of growing trade tensions between the US and the EU.
As the effects of Trump's tariffs have begun to drive up inflation, traders reduce their bets on a dovish Fed.
In the late Asian trading session on Wednesday, West Texas Intermediate (WTI) futures on the NYMEX are trading cautiously at $65.70. Due to ongoing concerns over global trade, investors are still unsure about the demand for energy, which causes the price of oil to fluctuate close to the weekly low.
Uncertainty over international trade harmony has been raised by the United States' (US) declaration of retaliatory tariffs on 17 other countries as well as its top trading partners, including the European Union (EU), Japan, Canada, Mexico, and South Korea.
22 countries have been hit with tariffs by US President Donald Trump for not reaching a trade agreement during the 90-day reciprocal levy delay. In the meantime, if it is unable to reach an agreement with the US before the new deadline of August 1, the EU has also prepared appropriate remedies. Trump has previously threatened to increase duties if any economy retaliates, thus the EU's introduction of countermeasures on US goods might exacerbate trade tensions.
In the meantime, growing inflationary pressures in the US as importers begin to pass on the effects of tariffs to consumers have cast doubt on the Federal Reserve's (Fed) decision to lower interest rates at its September policy meeting, which would be bad for the price of oil.
As anticipated, the Consumer Price Index (CPI) report for June revealed on Tuesday that the prices of certain US-imported goods increased significantly, causing headline inflation to spike to 2.7% annually.
Market analysts have cautioned that the impact of President Trump's further levies on countries has not yet been determined, and that the current pricing pressures are a rare reflection of sectoral tariffs. This would enable Fed officials to request additional time to evaluate how tariffs affect inflation.
