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• WTI price loses momentum to near $65.40 in Wednesday’s early Asian session. 
• Renewed trade tensions weigh on the oil demand outlook.
• Crude inventories in the United States declined by 577,000 barrels last week, noted API. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $65.40 during the early Asian trading hours on Wednesday. The WTI edges lower as US President Trump's tariff policies spark fresh concern over global fuel demand. Traders brace for the release of the US Energy Information Administration (EIA)  weekly crude oil stock report later on Wednesday. 

Traders are concerned that Trump's tariff policies will lead to slower global economic growth and reduced energy demand, which could exert some selling pressure on the WTI price. Trump stated that reciprocal tariffs will increase on August 1 for trade partners that have not reached a trade agreement with the US. Earlier this week, Trump had threatened a 30% tariff on the European Union (EU) imports if no deal was reached.

Additionally, concerns of a mounting global oil supply glut might contribute to the WTI’s downside. The Iraqi government has officially resumed crude oil exports from the Kurdistan Region after over two years' halt, in a move expected to ease tensions between Baghdad and Erbil and boost national export volumes. Kurdistan expects to supply Iraq's crude market with 230,000 barrels per day (bpd) of crude once exports resume. The outlook for larger crude exports from Iraq may boost global oil supplies and undermine the WTI price in the near term. 

US crude oil inventories fell last week, which might provide some support to the WTI. The American Petroleum Institute (API) weekly crude oil stock report showed crude oil stockpiles in the US for the week ending July 18 declined by 577,000 barrels, compared to a rise of 19.1 million barrels in the previous week. So far this year, crude oil inventories are up 11 million barrels, according to Oilprice calculations of API data.

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