The post WTI drops below $65 on supply surge and demand uncertainty appeared on BitcoinEthereumNews.com.

West Texas Intermediate declines as Venezuela and OPEC+ increase concerns about oversupply. Clarity on US–EU and US–China trade talks may guide the direction of WTI. WTI Crude Oil drops below $65.00 as technical pressure aligns with rising supply outlook. West Texas Intermediate (WTI) is under pressure on Friday as markets respond to a growing global supply outlook and remain cautious on demand prospects. At the time of writing, WTI is trading below $65.00, with daily losses exceeding 1.50%. The market is reacting to the prospect that Venezuela could resume Oil exports, following the US decision to reinstate Chevron’s license to operate in the country.  The move came after a high-profile prisoner exchange that led to the release of ten American hostages. Under the revised authorization, Chevron may conduct restricted oil-for-debt transactions and resume contractor payments, without enabling direct financial benefit to the Maduro regime. While immediate production gains are expected to be limited due to Venezuela’s weakened infrastructure, the move reopens the door to significant long-term supply potential. Venezuela holds the world’s largest proven Crude reserves, and even a partial recovery could impact global supply dynamics. Optimism surrounding the ongoing US–EU and US–China trade talks has helped lift broader risk sentiment. But until clarity emerges regarding the negotiations, WTI gains are likely to remain limited. Meanwhile, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) is set to increase output by 548,000 barrels per day (bpd) in August.  A follow-up meeting on August 3 is expected to confirm a similar increase for September. The combination of rising OPEC+ output and the potential return of Venezuelan supply is fueling concerns about oversupply. These supply-side risks currently outweigh supportive factors, such as improving demand indicators, stronger macroeconomic data, and easing trade tensions. WTI Crude Oil drops below $65.00 as technical…

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Filed under: News - @ July 26, 2025 2:29 pm