FX.co ★ Oil Falls to $67 on Tariff Jitters

West Texas Intermediate (WTI) crude oil futures experienced a modest decline of 0.7%, closing at $67 per barrel on Thursday. This dip mitigated some of the gains achieved in the previous session as investors assessed the potential impact of renewed US tariffs on global fuel consumption. The market adjusted in anticipation of a forthcoming decision by OPEC+ to raise production by 411,000 barrels per day. Prices had climbed on Wednesday following Iran's decision to halt cooperation with the UN nuclear watchdog, escalating geopolitical tensions. Although a tentative trade agreement between the US and Vietnam provided some support, ongoing unresolved tariff negotiations with major partners such as the European Union and Japan contributed to market uncertainty. Additional pressure resulted from weakening Chinese service sector activity and an unexpected increase of 3.85 million barrels in US crude oil inventories—the largest in three months—contrary to expectations for a reduction. This surge rekindled concerns about diminishing demand in the United States, the world's largest oil consumer. Concurrently, robust US job growth in June might defer Federal Reserve rate cuts, promoting a cautious approach in monetary policy.