,
Today, WTI crude oil for September delivery was last seen trading at $ 1.92 (or 2.77%) to $ 67.34 per barrel.
In a historic step, US President Donald Trump re -directed the global economy by signing an executive order to impose new tariffs on the trade of 69 countries with the US, with the levy 15% to 41% anywhere. Tariffs are ready to be effective from August 7 so that the authorities can be given space for preparation for tax collection.
So far such nations have been hitting a middle route in conversation to solve this long -term problem to sign a trade deal with the US.
Unable to measure the future influence of a high-tariff global trade regime, rebirth was taken in the global stock markets.
In the US today, the data released by the Labor Department showed that the increase in job was weak, as was considered earlier.
Data at consumer prices released yesterday also showed that prices for household goods and durable houses increased to 1.3% in June, indicating that the tariffs developing prices in the US are shooting upwards in the tariff ecosystem.
The data from the Baker Hughes Company released today has shown that the crude oil rigs in the US decreased from 415 to 410 in the last week and the total rigs in the US ended from 540 to 542 August to 540 from August 540.
On the geo -political front, the Red Sea has become a new flashpoint for oil and business disruption.
Yemen’s Houthi rebellious group threatened that all ships of companies having tie-ups with Israel will be attacked if they cruise through the Red Sea.
The global shipping route, supply chains and insurance markets are feeling pressure due to this danger because the vessels have to circulate as a result of delays and costs in significant times.
Trump had previously warned Russia to find ways to end the war with Ukraine in the next 10–12 days or faced a high tariff. Their danger also included “secondary restrictions” in countries buying oil from Russia. So far, Russia has displayed no desire for the ceasefire.
A “penalty” threat by us has forced India’s state oil refineries to stop their purchases from Russia. In particular, India is the third largest crude oil importer in the world.
The Trump administration has exempted the restrictions to the Chevron to resume operations in Venezuela. When the global oil starts pumping the major pump, significant additions can be seen on the supply side.
OPEC+ Member-Nation is meeting on August 3 to decide production cuts on August 3. The first 548,000 barrels are a target of September per day.
OPEC+ has a 1.66 million BPD sideline supply, which is scheduled to remain offline by next year. There are questions on whether the coalition will again see 1.66 million BPD again or in future.
Traders are concerned that an excessive tariff regime will act against consumption and thus reduce the demand for oil and energy, resulting in weight of oil prices.
The idea and opinion expressed here are the idea and opinion of the author and not necessarily Nasdac, Inc.
