Oil prices remained under pressure as traders continued selling positions, with analysts at TD Securities (TDS) predicting further downside amid concerns over demand and economic uncertainty. Brent crude fell 1.2% to $76.85 per barrel, while West Texas Intermediate (WTI) dropped 1.5% to $71.30, reflecting ongoing bearish sentiment in the market.
According to TDS strategists, the latest wave of selling is driven by weaker demand signals from major economies, particularly China and Europe. Slower industrial activity and a buildup in crude inventories have raised doubts about near-term price recovery. Additionally, concerns over prolonged higher interest rates in the U.S. are weighing on risk assets, further dampening oil market sentiment.
Investors have also reacted to the latest U.S. stockpile data, which showed an unexpected increase in crude inventories. Rising supply, coupled with signs of softer consumer demand, has reinforced downward momentum in oil prices. Market participants are now watching for potential output adjustments from OPEC+, though recent indications suggest the group remains hesitant to cut production further.
Meanwhile, hedge funds and speculative traders have been unwinding their long positions, amplifying the selling pressure in energy markets. TDS analysts warn that further liquidations could accelerate declines, particularly if global growth concerns persist. The strengthening U.S. dollar has also contributed to oil’s weakness, making crude more expensive for international buyers.
Despite the bearish outlook, some analysts believe a short-term rebound is possible if geopolitical risks or supply disruptions emerge. However, sustained recovery will likely require stronger demand signals from China and the U.S., as well as clearer guidance from major oil producers on future output levels.
For now, the market remains in a cautious stance, with traders closely monitoring economic data and central bank policy moves. With oil prices struggling to find support, TDS maintains its view that the selling trend is likely to continue unless fundamental conditions improve.
