WTI rises to near $65.50 as crude inventories drop, tariff fears may cap gains

• WTI price trades in positive territory near $65.50 in Thursday's early Asian session. 
• Crude inventories in the United States fell by 3.859 million barrels last week, noted EIA. 
• Concerns that Trump's tariff policy will hurt demand might cap the WTI's upside. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $65.50 during the early Asian trading hours on Thursday. The WTI drifts higher, snapping the three-day losing streak, as US crude oil inventories post a weekly draw. 

US crude oil inventories fell last week, reversing some of the large stock builds seen in the previous two weeks. The US Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the US for the week ending July 11 fell by 3.859 million barrels, compared to a rise of 7.07 million barrels in the previous week. The market consensus estimated that stocks would decline by 1.8 million barrels.  

On the other hand, concerns about wider economic impact from US tariffs and economic uncertainty could weigh on the WTI price. US President Donald Trump said he would send letters to more than 150 trade partners notifying them of tariff rates. Trump also stated that he would probably put 10% or 15% tariff on smaller countries.

Easing concerns about supply disruption after Trump gives a 50-day deadline for Russia to end the war in Ukraine might undermine the black gold. 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.