WTI loses ground to near $65.50 amid concerns over mounting global supply, tariff fears 

• WTI price drifts lower to around $65.65 in Tuesday's early Asian session. 
• Iraq resumes Kurdistan oil exports after over a two-year suspension.
• EU sanctions target Russian crude supply. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $65.65 during the early Asian trading hours on Tuesday. The WTI loses traction amid concerns of a mounting global oil supply glut. Traders await the release of the American Petroleum Institute (API) weekly crude oil stock report later on Tuesday for fresh impetus. 

The Iraqi government has officially resumed crude oil exports from the Kurdistan Region after over two years' halt, in a move expected to ease tensions between Baghdad and Erbil and boost national export volumes. Kurdistan expects to supply Iraq's crude market with 230,000 barrels per day (bpd) of crude once exports resume.  The outlook for larger crude exports from Iraq may boost global oil supplies and undermine the WTI price in the near term. 

Additionally, the US tariff deadline might weigh on the WTI price. US tariffs on EU imports are expected to begin August 1, raising trade concerns that extend beyond oil. Commerce Secretary Howard Lutnick voiced optimism on reaching a deal with the bloc, but in the interim, tariff risk continues to cap crude's upside.

On the other hand, the European Union (EU) measures on Russian crude supply might provide some support to the black gold. The EU last week approved the 18th package of sanctions against Russia over its war in Ukraine, which also targeted India's Nayara Energy, an exporter of oil products refined from Russian crude. This measure followed US President Donald Trump's threats last week to impose sanctions on buyers of Russian exports unless Russia agrees to a peace deal within 50 days.