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>>WTI crude oil drops to $66 as US inventory soars sharply, leading traders to focus on crucial US‑Iran negotiations.

WTI crude oil drops to $66 as US inventory soars sharply, leading traders to focus on crucial US‑Iran negotiations.

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about 3 hours ago

Price Drop and Inventory Surge

WTI slipped to about $66 per barrel after the EIA reported a surprise 12.1 million‑barrel rise in U.S. crude stocks for the week ending April 4. The fourth consecutive build reflects steady 13.2 million bpd production, slightly lower refinery runs and modest gasoline demand. The oversupply has turned the market bearish.

Trader Reaction and Technical Outlook

May contracts fell over 3.5%, breaking the 50‑day and 100‑day moving averages and triggering stop‑loss orders. Algorithmic selling accelerated the decline, and analysts warn a breach below $66 could open a path toward $64. $66 now acts as a key psychological barrier.

Geopolitical Influence: US‑Iran Talks

US‑Iran talks on reviving the JCPOA add a “shadow supply” risk, as lifted sanctions could let Iran boost exports by 1‑1.5 million bpd within a year. Positive diplomatic news pushes WTI lower, while any setback or Strait‑of‑Hormuz tension could lift prices. Traders watch statements from Vienna, Brussels and Washington.

Outlook and Market Ripple Effects

The WTI‑Brent spread has tightened to $2.5, energy stocks and oil‑exporter currencies have slipped, and gasoline‑pump benefits may lag. Eyes are on China’s industrial demand, Europe’s recovery and the early‑May OPEC+ meeting, where further cuts or extensions could support prices. Without a demand surge or supply shock, the inventory overhang may keep WTI subdued through Q2 2025.