WTI falls below $70.00 amid worries about US economy, Trump tariffs

• WTI price edges lower to around $69.00 in Wednesday's early Asian session. 
• Worries about Trump's push for trade tariffs weigh on the WTI price. 
• Crude oil inventories in the US fell by 640,000 barrels last week, according to the API. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $69.00 during the early Asian session on Wednesday. The WTI price faces some selling pressure to a two-month low amid the fears of slower energy demand and worries about US President Donald Trump's tariffs. 

Analysts said Trump's stated plans for higher tariffs have raised inflation worries at the US Federal Reserve (Fed). This might convince the US central bank to keep interest rates higher, which in turn could slow economic growth and energy demand. On Monday, Trump said that sweeping US tariffs on imports from Canada and Mexico "will go forward" when a month-long delay on their implementation expires next week.

The American Petroleum Institute (API) weekly report showed crude oil stockpiles in the United States for the week ending February 21 declined by 640,000 barrels, compared to a rise of 3.34 million barrels in the previous week. The market consensus estimated that stocks would increase by 2.3 million barrels. 

Additionally, the possible peace talks on the Russia-Ukraine war might cap the upside for the WTI price. "Also weighing on oil prices was the possibility of a peace deal between Russia and Ukraine that foreshadows the lifting of Russian sanctions, potentially welcoming unfettered Russian supply back to the market," said Tamas Varga at oil broker PVM.