West Texas Intermediate falls to $69.01, erasing gains despite Hormuz disruption and lower China imports.
West Texas Intermediate crude oil fell $2.91 to $69.01, breaking below key support levels despite geopolitical tensions in the Hormuz Strait. The decline extends a months-long rout, leaving prices near pre-disruption levels from four months ago.
Analysts cite Strategic Petroleum Reserve releases and a 4 million barrel-per-day drop in China’s imports as partial explanations. However, the scale of the selloff has puzzled markets, with oil stocks trading below pre-Hormuz levels and no clear catalyst for the continued weakness.
The move underscores the disconnect between physical supply risks and paper market dynamics, raising questions about potential undisclosed inventory releases or speculative positioning.