WTI Oil declines as US-Iran talks ease tensions, supply data awaited

💡 DMK Insight

WTI crude oil’s drop to $63.90 signals a shift in market sentiment amid easing supply fears. The recent decline of 0.43% reflects traders’ waning concerns over Middle Eastern disruptions, which had previously supported prices. With geopolitical tensions cooling, it’s crucial to watch how this impacts demand forecasts, especially as we approach winter months when consumption typically spikes. If WTI can hold above $63, it may indicate a consolidation phase, but a break below could trigger further selling pressure. Keep an eye on the $60 support level, as a breach there could lead to a more significant downturn. On the flip side, if tensions reignite or OPEC+ decides to cut production further, we could see a rapid reversal. Traders should monitor inventory reports and global economic indicators closely, as these will provide insight into future price movements. The next few days will be critical for determining whether this downward trend is temporary or the start of a more extended decline.