WTI rises toward $66.00, gains seem limited amid tariff concerns, economic slowdown fears

• WTI price could lose ground as tariff concerns could slow economic growth.
• President Donald Trump referred to the economy as being in a "transition period," hinting at a potential slowdown.
• Oil demand concerns rise due to deepening deflationary pressures in China, the world's top Oil importer.

West Texas Intermediate (WTI) Oil price edges higher on Tuesday, trading around $65.90 per barrel during early European hours after experiencing losses in the previous session. However, crude Oil prices faced headwinds amid concerns that United States (US) tariffs could slow economic growth and reduce Oil demand.

Tariffs imposed--and later delayed--by US President Donald Trump on major oil suppliers, including Canada and Mexico, along with China's retaliatory measures, have raised fears of a global economic slowdown. Both China and Canada have responded with their tariffs.

Ontario's Premier Doug Ford announced that starting Monday, electricity prices for 1.5 million American homes and businesses will rise by 25% in retaliation for Trump's trade policies. Meanwhile, China implemented retaliatory tariffs of up to 15% on select US agricultural products on Monday, following last week's US tariff hike from 10% to 20% on Chinese imports.

Additionally, President Trump characterized the economy as being in a "transition period," hinting at a potential slowdown. Investors took his remarks as an early signal of possible economic turbulence in the near future.

Economic weakness in China, the world's top Oil importer, further pressured crude prices. Recent data suggested deepening deflationary pressures despite government stimulus efforts, with February marking the sharpest decline in consumer prices in 13 months and the 29th consecutive monthly drop in factory-gate prices.

Russian Deputy Prime Minister Alexander Novak announced on Friday that the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, had agreed to start increasing Oil production in April. However, he cautioned that the decision could be reversed if market imbalances arise.