West Texas Intermediate (WTI) US Crude Oil prices hovered in a narrow range near $61.75 during the Asian session on Tuesday, lacking clear intraday direction and remaining just above the one-and-a-half-week low reached the previous day.
Market sentiment remains clouded by the ongoing US-China trade dispute, with conflicting signals from both sides raising fresh concerns about the state of negotiations. Investors fear that prolonged tensions between the world’s two largest economies could tip the global economy toward recession and curb fuel demand—factors that continue to weigh heavily on crude prices.
Adding to the bearish tone, reports indicate that several OPEC+ members may propose accelerating output hikes for a second consecutive month at their June meeting. At the same time, renewed optimism surrounding nuclear deal negotiations between the United States and Iran has stoked fears of a potential increase in global oil supply, further dampening market sentiment.
These combined pressures have largely overshadowed the recent softness in the US Dollar, reinforcing the view that the path of least resistance for crude oil remains to the downside. This increases the likelihood of a sustained break below the one-week-old trading range and a deeper retreat from the recent peak near $64.70.
Looking ahead, traders will turn their attention to upcoming key economic releases, including China’s official Purchasing Managers’ Index (PMI) and the US Nonfarm Payrolls (NFP) report. These data points are expected to provide clearer signals for oil demand prospects. Nonetheless, the broader fundamental backdrop suggests a cautious approach remains warranted before taking any bullish positions in crude.
