WTI Oil Falls to $65.50 as Trade Tensions Weigh on Global Demand Outlook

WTI Oil Falls to $65.50 as Trade Tensions Weigh on Global Demand Outlook

July 22, 2025 – Tredu Commodities Desk

The price of West Texas Intermediate (WTI) crude oil slipped again on Tuesday, trading around $65.50 in European markets. This marks the third consecutive daily decline as growing trade tensions between the US and EU fuel worries over global demand.

Market Sentiment Weakens on Trade Risks

Investors are in risk-off mode as the August 1 tariff deadline from US President Donald Trump looms. Trump has vowed to impose 30% duties on EU exports, pressuring the European Union to react with a set of broader retaliatory measures.

A Reuters report cited EU diplomats who suggest that optimism over a trade deal is fading fast. With oil demand highly sensitive to global trade, these developments are casting a shadow over the energy markets.

High-Stakes Talks Expected This Week

Traders now turn their focus to upcoming news on US–EU trade negotiations, which are seen as critical for near-term oil demand expectations. Any signals of compromise could halt the current WTI slide, while escalation could send prices further downward.

Global Investment Ties Add Intrigue

In a separate but relevant development, Indonesia's sovereign wealth fund Danantara is reportedly ready to sign an $8 billion agreement with US firm KBR Inc. This deal may offer some long-term energy sector optimism despite near-term headwinds.

Key Takeaways:

• WTI oil trades around $65.50, third day of decline
• Market cautious ahead of US-EU August 1 tariff deadline
• Trump threatens 30% tariffs on EU exports
• EU considers sweeping retaliatory measures
• Indonesia's Danantara to sign $8B deal with KBR Inc.

Related on Tredu.com:

• Brent vs. WTI: What’s Driving the Divergence?
• Commodities Outlook: Oil, Gold, and Silver in Focus
• US Tariff Timeline: Key Dates & Market Impacts
• EU Trade Policy Reactions: What to Expect in Energy Markets