WTI Oil declines on inventory surge, Middle East tensions cap losses

💡 DMK Insight

WTI crude oil’s dip to $64.15 signals a response to rising inventory levels, and here’s why that matters: The recent 1.10% drop reflects traders’ concerns over oversupply, as the latest US inventory data indicates a build-up that could pressure prices further. This trend isn’t just a short-term blip; it aligns with broader economic indicators showing a potential slowdown in demand, especially as global economic uncertainties loom. For day traders and swing traders, this could mean adjusting positions or even shorting if prices break below key support levels. Watch for the $63.50 mark, as a sustained drop below this could trigger more selling pressure. On the flip side, if prices rebound and hold above $65, it could signal a buying opportunity, especially if accompanied by a decrease in inventory levels in the coming weeks. Keep an eye on upcoming reports and market sentiment, as they could shift the narrative quickly. The immediate focus should be on how the market reacts to these inventory figures and any geopolitical developments that could influence oil prices.