WTI Crude Drops Below $66.50 Amid Surprise U.S. Inventory Build and Iran-IAEA Tensions

WTI Crude Oil Slips Below $66.50 After U.S. Inventory Build

West Texas Intermediate (WTI) — the U.S. crude oil benchmark — fell to around $66.40 during early Asian trading on Thursday. The drop follows a surprise increase in U.S. crude inventories, according to the latest Energy Information Administration (EIA) report.

EIA Data Shocks Oil Market Expectations

The EIA reported that U.S. crude stocks rose by 3.845 million barrels in the week ending June 27. This contrasts sharply with last week’s drawdown of 5.836 million barrels and market expectations for a 2 million barrel decrease. The data suggests weaker domestic demand, pressuring WTI prices downward.

OPEC+ Decision Looms

Oil traders remain cautious ahead of the OPEC+ meeting, where key output policies for August will be determined. Any changes in production quotas could further influence short-term price movements.

Iran Suspends IAEA Cooperation

Adding to market volatility, Iran has suspended cooperation with the International Atomic Energy Agency (IAEA). A senior Iranian official stated that the Supreme National Security Council must approve future inspections. Tehran accuses the IAEA of favoring Western interests and legitimizing Israeli airstrikes.

What This Means for Oil Markets

The combination of a surprise crude inventory build, uncertainty surrounding OPEC+ policy, and heightened geopolitical risk could keep oil prices volatile in the coming days. Investors should stay alert to news from Vienna (OPEC+) and further developments in U.S.-Iran relations.

For more insights, read our Energy Markets News section.