WTI drifts higher to near $66.00 as Trump threatens Russia with new sanctions

• WTI price rises to around $65.90 in Tuesday's early Asian session.
• The US threatened to hit buyers of Russian exports with sanctions if there's no deal between Russia and Ukraine in 50 days.
• Tariff uncertainty and ongoing trade jitters might undermine the WTI price.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $65.90 during the early Asian trading hours on Tuesday. The WTI price edges higher amid concerns over the United States' sanctions on Russia that may affect global supplies.

US President Donald Trump late Monday announced new weapons for Ukraine and threatened sanctions on buyers of Russian exports unless Russia agrees to a peace deal in 50 days. A White House official said Trump was referring to 100% tariffs on Russian exports as well as so-called secondary sanctions, which target third countries that buy a country's exports.

Last week, Trump said that he would make a "major statement" on Russia on Monday, expressing his frustration with Russian President Vladimir Putin over the lack of progress in ending the war in Ukraine.

Furthermore, firming demand signals from China might contribute to the WTI's upside. China's crude imports hit a 10-month high,  rising 7.4% on the year in June to 12.14 million barrels per day, according to customs data released on Monday. This figure registered the highest since August 2023. 

On the other hand, the uncertainty surrounding Trump's tariff might weigh on the WTI price. Investors will closely monitor the outcome of US trade negotiations with key trading partners. The European Union (EU) and South Korea said on Monday they were working on trade deals with the US that would soften the blow from looming tariffs as Washington threatens to impose levies from August 1. Intensifying US tariff pressures could undermine the price of black gold, as tariffs can lead to trade wars, slowing down global trade and economic activity.