WTI Crude Oil Dips Below $66 as Trump’s Russia Deadline Calms Supply Concerns

WTI Crude Oil Dips Below $66 as Trump’s Russia Deadline Calms Supply Concerns

West Texas Intermediate (WTI) crude oil slipped to around $65.70 during early Wednesday trading in Asia, extending its bearish momentum after a volatile start to the week. The dip comes as geopolitical tensions ease slightly following a significant announcement by former U.S. President Donald Trump.

Trump’s 50-Day Russia Deadline Reassures Oil Market

In a surprise statement on Monday, Trump unveiled advanced military support for Ukraine and warned of sanctions on Russian oil export buyers unless Moscow agrees to a peace deal within 50 days. This move temporarily cooled fears of prolonged global supply disruptions, leading to a pullback in WTI prices.

Massive U.S. Crude Inventory Build Pressures WTI

Adding to the bearish tone, the American Petroleum Institute (API) reported a staggering 19.1 million-barrel increase in U.S. crude oil stockpiles for the week ending July 11. This is the largest weekly build in over a decade, sharply contrasting with market expectations of a 2 million-barrel draw. The prior week had seen a 7.1 million-barrel decline.

• WTI Price: $65.70
• API Inventory Change: +19.1M barrels
• Expected: -2.0M barrels

China’s Strong Q2 GDP Caps WTI Losses

On a more supportive note, China’s Q2 GDP came in stronger than forecast, growing 5.2% year-on-year, slightly above the expected 5.1%. As the world’s second-largest oil consumer, robust Chinese growth signals potentially higher demand, offering a floor to the recent WTI price drop.

What This Means for Traders and Investors

The mix of geopolitical developments, unexpected inventory builds, and macroeconomic data is creating short-term volatility in crude oil markets. Investors should watch for further diplomatic signals from Washington and Moscow, as well as official U.S. EIA inventory data due later this week.

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