WTI Crude Hits Multi Week Low on Growing Global Oversupply Fears

Surplus Overwhelms Geopolitics

The dominant factor is the projected supply glut, driven by sustained, high production from the United States, Brazil, and other non-OPEC countries. This relentless supply growth is neutralizing the impact of geopolitical risk premiums, with traders shrugging off tensions in the Middle East and elsewhere.

Weak Chinese Data Weighs

Weaker-than-expected economic news from China, which is crucial for oil demand, is adding pressure to prices. Concerns about slower global energy demand growth are forcing traders to liquidate positions, with the market focusing on the near-term imbalance rather than OPEC+'s stated commitment to production cuts.

OPEC+ Policy Crossroads

OPEC+ is at a crossroads. Its current production cuts are being tested severely by non-OPEC output. The market is waiting for signals on whether the group will implement deeper, more mandatory cuts to enforce price stability or risk a further erosion of its market share in an oversupplied environment.