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• WTI price trades in positive territory near $63.75 in Thursday’s early Asian session.
• US crude oil inventories fell by 3.029 million barrels last week, said EIA. 
• Trump threatens India and China with additional tariffs over Russian crude imports, sparking fears of supply rerouting.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $63.75 during the early Asian trading hours on Thursday. The WTI bounces off a five-week low amid bullish US crude oil inventories data and geopolitical tension. 

A fall in US crude oil inventories last week suggests demand remains firm, which might help limit the WTI’s losses. The US Energy Information Administration (EIA) Crude Oil Stockpiles report showed 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.

A recovery in the black gold comes after US President Donald Trump imposed an additional 25% tariff on Indian goods over its purchases of Russian energy. Additionally, Trump said that he could impose extra tariffs on China similar to the 25% levies announced earlier on India, per Reuters. The announcement raised fears of potential supply rerouting and wider geopolitical tensions, particularly as India and China remain the largest buyers of Russian oil.

On the other hand, the upside for the black gold might be capped on the Organization of Petroleum Exporting Countries and allies (OPEC+) output hikes. OPEC+ met virtually on Sunday, agreeing to boost oil production by 547K barrels per day (bps) for September as concerns mount over potential supply disruptions linked to Russia. 

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