WTI tumbles below $65.50 on demand concerns

• WTI price extends its downside to near $65.45 in Tuesday's early Asian session. 
• Fears of slow global economies and US tariffs weigh on the WTI price. 
• Possible sanctions against Iran and Russia from the US might help limit the WTI's losses. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $65.45 during the early Asian session on Tuesday. The WTI price extends the decline amid concerns that US tariffs on Canada, Mexico and China would slow global economies and slash energy demand. 

US President Donald Trump issued an executive order last week exempting goods from both Canada and Mexico under a North American trade agreement, known as USMCA, while raising duties on Chinese goods. China retaliated against the US and Canada with tariffs on agricultural products. 

Continued policy uncertainty surrounding the Trump administration's trade policy and a probable global economic slowdown that could curtail oil demand are likely to undermine the WTI price in the near term.  "There are recession talks for the U.S. and it's very concerning for the macro picture," said John Kilduff, partner with Again Capital in New York.

On the other hand, possible sanctions against Iran and Russia from the US could provide support for the WTI price. Trump is trying to choke off Iranian oil exports as part of his attempts to push Tehran to curtail its nuclear program. Iran's Supreme Leader, Ayatollah Ali Khamenei, said on Saturday that his country will not be bullied into negotiations.