FX.co ★ WTI Dips Below $68 Amid Sanction Disappointment

On Monday, West Texas Intermediate (WTI) crude oil futures decreased by 1.5%, falling below $67.6 per barrel. This decline followed President Trump's decision not to implement new sanctions on Russian oil, which took the market by surprise as many anticipated more stringent actions. Although Trump did caution that Russia might face 100% secondary tariffs if a ceasefire isn't achieved within 50 days, the lack of immediate sanctions led to lower oil prices. Additionally, Trump's ongoing threats to impose global tariffs, such as a 30% levy on European Union and Mexican goods, have dampened investor sentiment and raised fears of decreased energy consumption. Market participants are concerned that protectionist measures might slow global economic growth and potentially result in an oversupply of oil later in the year. In response, hedge funds have rapidly reduced their bullish positions at the quickest rate since February. Nevertheless, Chinese trade data provided some support as crude imports increased and purchases of Iranian oil rose in June, indicating strong short-term demand.