WTI Plunges 6.39% Amid Shift in OPEC+ Supply Policy Expectations

WTI (USOIL) took a sharp hit on July 26, plummeting by 6.39% to $84.287 after a series of events sent shockwaves through the market.

The main driver behind this downturn was OPEC+ supply policy expectations shifting significantly towards prematurely terminating voluntary production cuts.

This potential influx of supply comes at a time when the market is already fragile, removing the floor that had previously supported prices.

Simultaneously, deteriorating demand signals from major consuming economies have exacerbated the sell-off, with recent industrial data and purchasing managers' indices indicating a more pronounced manufacturing contraction than anticipated.