West Texas Intermediate (WTI) crude slipped below $66.50 per barrel, pressured by a larger-than-expected build in U.S. crude inventories and renewed trade concerns following U.S. tariff moves. The decline reflects growing supply-side pressures, as rising stockpiles signal weaker near-term demand while geopolitical uncertainties add to market volatility.
The latest data from the U.S. Energy Information Administration (EIA) showed an increase in crude inventories, suggesting that supply is outpacing demand. A buildup in stockpiles often indicates slower consumption, raising concerns about the strength of global oil demand, particularly as economic growth remains uneven across major markets.
Adding to the downside, trade tensions have resurfaced, with the U.S. imposing new tariffs that could disrupt global commerce. Tariffs on key goods can slow economic activity, dampening energy demand and pressuring oil prices further. Investors are closely watching for potential retaliatory measures that could escalate the situation.
Despite the recent drop, some analysts believe that oil prices could find support if OPEC+ maintains supply cuts or if geopolitical risks in major producing regions lead to tighter market conditions. However, the combination of high inventories and trade uncertainties is keeping sentiment cautious.
Looking ahead, traders will focus on U.S. economic data, Federal Reserve signals, and global demand trends for clues on oil’s next move. Any signs of cooling inflation or potential shifts in monetary policy could influence energy market expectations.
For now, WTI remains under pressure, with market participants waiting for clearer signals on whether supply-demand dynamics will shift in favor of a price rebound or if further declines are ahead.
