The sell-off comes amid OPEC’s announcement to ramp up production by an additional 411,000 barrels per day in July, a move aimed at easing global supply concerns and stabilizing prices.
Despite the sharp weekly drop, WTI remains supported by the key psychological level of $64.00, which has historically served as a strong demand zone. However, with tensions in the Middle East showing signs of de-escalation, the immediate upside for oil appears limited, as the market recalibrates expectations for near-term risk premiums.
Source: create.vista.com
WTI Crude Oil Slumps Over 12% as Supply Outlook Shifts
WTI Crude Oil has experienced a sharp downturn this week, plunging over 12% from Monday’s peak of $76.44 and currently trading below $65.00 per barrel. This marks the steepest weekly decline since March 2023.
The selloff follows a shift in market sentiment as geopolitical tensions ease and traders unwind positions. Earlier concerns over potential supply disruptions in the Strait of Hormuz have faded with the Israel-Iran ceasefire holding, reducing the perceived risk premium in oil markets.
Adding to the downward pressure, OPEC is set to boost production by an additional 411,000 barrels per day starting in July, further easing supply concerns. Meanwhile, a larger-than-expected drop in U.S. crude inventories reported by the EIA has had limited market impact, as broader demand signals remain uncertain.
With traders now pricing in a more stable range of $60–$69 per barrel, caution dominates the outlook heading into the second half of the year.
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