West Texas Intermediate (WTI) crude oil remained under pressure, hovering near $71.00 per barrel, as a rise in US crude inventories and renewed concerns over US-China trade tensions dampened market sentiment. Traders held back from making aggressive bets as a combination of supply-side pressures and global demand uncertainty kept oil prices in check.
Data from the US Energy Information Administration (EIA) showed a larger-than-expected buildup in crude stockpiles, signaling that domestic supply remains ample despite ongoing production cuts from OPEC+. The unexpected increase in inventories has raised concerns about short-term demand softness, limiting any upside momentum in WTI.
Adding to the bearish tone, uncertainty surrounding US-China trade relations has weighed on broader risk sentiment. Investors remain cautious as escalating tariff disputes could slow global growth and reduce oil demand prospects, further pressuring prices. With China being one of the world’s largest oil consumers, any potential economic slowdown could have a significant impact on crude markets.
Looking ahead, market participants will closely watch upcoming US economic data, Federal Reserve policy signals, and further updates on OPEC+ supply decisions. A shift in global risk sentiment or signs of easing trade tensions could provide some relief, while continued oversupply concerns may keep WTI on the defensive.
For now, WTI remains vulnerable, with rising inventories and geopolitical uncertainty dictating price movements. Unless a catalyst emerges to shift sentiment, crude prices could struggle to break out of their current range in the near term.
