WTI Crude Dips Near $88.50 Amid G7 Reserve Release and Rising Supply

West Texas Intermediate (WTI) crude oil prices dipped to nearly $88.50 during early Asian trading on Tuesday, pressured by rising Middle East exports and the G7's decision to release emergency oil reserves. The Group of Seven nations agreed to free 100 million barrels of diesel and crude, aiming to stabilize supplies after pressure from U.S. President Donald Trump. Meanwhile, Middle Eastern crude exports have surpassed pre-war levels, further boosting supply.

Trump also signed an executive order easing restrictions on tax-exempt diesel, allowing broader access to red-dyed diesel ahead of the midterm elections. Analyst Tim Waterer of KCM Trade noted that the G7's reserve release and returning Middle Eastern supply are easing immediate supply concerns, even as geopolitical risks persist. Traders await the American Petroleum Institute's crude oil stockpiles report, which could influence WTI prices based on inventory changes.

Tensions in the Middle East, including attacks by Yemen’s Houthi group on Saudi targets, could limit WTI's downward movement. Rabobank analysts warn of escalating U.S.-Iran tensions, which may keep oil prices elevated despite stable supply routes through the Strait of Hormuz. Technically, WTI shows a neutral-to-bearish bias, consolidating below key resistance levels and above support, with fading bullish momentum.