WTI Crude Oil Drops Over 1% Following Surge in US Inventories

West Texas Intermediate (WTI) crude oil prices faced downward pressure today, declining by 1.10% to trade near the $64.15 per barrel mark. The primary catalyst for this decline was the latest weekly US inventory data, which revealed a significant surge in domestic oil stocks. This increase in supply has heightened market concerns regarding potential oversupply or weakening demand within the world's largest economy. Despite the bearish inventory news, ongoing geopolitical tensions in the Middle East continue to provide a floor for prices, limiting further losses. Market participants are maintaining a cautious stance as they weigh the impact of rising US production against global supply risks. The interplay between robust inventory levels and geopolitical risk premiums is expected to keep oil prices volatile in the near term.