China’s soft manufacturing data and rising U.S. stockpiles drove traders away from oil, while easing trade tensions reduced its safe-haven appeal.

Price Movement Analysis

Brent and WTI Performance

Brent closed at $66.40, down 2.2% from $67.86, and WTI finished at $62.75, down 2% from $64.07.

Benchmark Comparison

Brent sits 2.8% below its two-week average of $68.29, and WTI is 3% below its $64.65 average.

Largest Single-Day Drop

This marks the biggest one-day fall since mid-October, stoking doubts about OPEC+ rebalancing efforts.

Demand Concerns Weigh Heavy

Soft Chinese PMI Readings

China’s PMI slipped to 49.9, signalling contraction and reducing Asian crude appetite.

U.S. Crude Stockpile Surge

EIA data showed a 3.1 million-barrel inventory build, contradicting forecasts and highlighting weak refinery demand.

Optimism on Trade Tariffs

Advances in U.S.-China tariffs discussions spurred equity rallies, cutting crude’s risk-premium.

Sector and Portfolio Impact

Energy Stocks Under Pressure

ExxonMobil fell 1.8% and Chevron 1.3%, while smaller producers faced steeper losses.

Commodity ETF Outflows

USO and XOP saw $73 million in outflows as investors rotated into less volatile assets.

High-Yield Bond Effects

Yields on energy junk bonds rose 10 bps, reflecting concerns over debt-servicing on lower oil revenues.

Strategy Spotlight

Our latest issue of The Energy Edge highlighted rising U.S. inventories as a trigger—proving the value of proactive market analysis.

What’s Next for Crude Prices?

Technical support lies at $64–65 for Brent and around $60 for WTI. Upcoming U.S. payrolls and OPEC reports could drive the next move.

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