West Texas Intermediate (WTI) crude oil prices hovered near $61.75 on Tuesday, marking a more than one-week low, as renewed concerns over global demand weighed on market sentiment. Traders grew cautious amid signs of slowing consumption in key economies and lingering uncertainty around broader financial markets.
The fresh downturn in oil prices comes despite some stabilization in risk assets elsewhere, underscoring the market’s sensitivity to global economic signals. Weak demand forecasts from major agencies and persistent worries over China’s post-pandemic recovery have added pressure, limiting any meaningful rebound in crude.
Broader financial market volatility has also seeped into commodity trading. A firmer US dollar has further dented oil’s appeal, making dollar-denominated commodities more expensive for holders of other currencies. Meanwhile, investors are keeping a close eye on upcoming economic data that could offer more clues about the strength of demand heading into the second half of the year.
Some analysts note that while WTI remains above key technical support levels, the lack of strong bullish catalysts could leave oil vulnerable to further downside in the near term. “Unless we see a major surprise in demand indicators or a supply shock, oil may struggle to regain strong upward momentum,” one analyst said.
Looking ahead, energy markets will likely stay reactive to any updates around global growth prospects, particularly from the United States and China, as well as geopolitical developments that could disrupt supply chains. For now, WTI’s inability to reclaim recent highs signals ongoing caution among traders despite relatively stable fundamentals.
