WTI crude prices stabilized to a certain extent for a third day in a row on Tuesday after their recent slide to five-month lows.
For the last few sessions, the market has entered a period of consolidation as traders await fresh catalysts.
Attention is now turning to the API and EIA inventory reports for new signals on the immediate supply picture.
Simultaneously, the market is closely monitoring potential developments from US-China trade discussions, which could be critical for the demand outlook.
Despite this near-term pause, the market’s underlying bearish structure remains a headwind, with supply outpacing demand. Resilient non-OPEC production, particularly from the Americas, combined with steady OPEC+ output, has kept global supply elevated. Projections from the IEA suggest this dynamic could lead to a sizeable market surplus building into 2026.
Therefore, while the market is currently testing support, momentum remains skewed to the downside. Barring a significant upside surprise from U.S. inventories or a major breakthrough in trade talks, any price bounces are likely to fade.
