West Texas Intermediate (WTI) crude dropped to a two-week low on Wednesday, slipping below $71.00 as market concerns over potential oil supply disruptions eased. The decline follows a period of heightened volatility driven by geopolitical tensions, but recent developments have tempered fears of any immediate threats to global supply chains.
Oil prices had spiked in recent weeks on worries about Middle East conflicts and their potential impact on production. However, with no significant disruption materializing, traders have begun to unwind their risk positions, leading to a cooling in the market.
At the same time, broader concerns about global demand continue to weigh on oil prices. Economic slowdowns in key markets, particularly in China and Europe, are dampening the outlook for energy consumption, further pressuring WTI.
As WTI crude dips below $71, market participants are now focusing on broader supply and demand dynamics, including the upcoming US inventory data and ongoing negotiations around OPEC+ production targets. With supply fears fading, attention is shifting to whether demand can recover strongly enough to support higher oil prices in the near term.
