WTI wobbles around $66 as Trump's tariff deadline looms large

• WTI trades with caution around $66.00 as investors struggle to evaluate the global outlook post July 9 tariff deadline.
• US President Trump confirmed that he will not extend the tariff deadline.
• Traders pare bets supporting Fed's interest rate cuts in the policy meeting later this month.

West Texas Intermediate (WTI), futures on NYMEX, trades cautiously near $66.00 during the European trading session on Friday. The Oil price struggles to hold its recent recovery from the weekly low of $64.00 as investors turn cautious regarding the energy demand post the imposition of reciprocal tariffs by United States (US) President Donald Trump, following the deadline on July 9.

US President Trump said late last week that he will not extend the tariff deadline for those countries that fail to strike a deal with Washington during the 90-day pause. I don't think I'll need to," Trump said in an interview with Fox Business.

Meanwhile, Donald Trump has also stated that he will send letters to those nations whose government has not struck a deal with Washington yet, outlining additional tariff rates, by Friday.

So far, Washington has announced trade agreements with the United Kingdom (UK) and Vietnam and a framework with China, and has expressed confidence that it will strike a deal with India before the tariff deadline.

The imposition of reciprocal tariffs by the US on its major trading partners, such as the Eurozone, Japan, Canada, and Mexico, will dampen global trade stability. A scenario that will diminish the global oil demand.

Meanwhile, a decline in traders' bets supporting interest rate cuts by the Federal Reserve (Fed) in the policy meeting later this month, after the release of the upbeat US Nonfarm Payrolls (NFP) data for June has also capped the Oil price's upside.

According to the CME FedWatch tool, the probability of the Fed cutting interest rates in July has decreased to 4.7% from 23.8% seen a day prior to the US NFP data release.