WTI crude oil futures fall 1%, currently at $63.95 per barrel.

WTI crude oil futures fall 1%, currently at $63.95 per barrel.

West Texas Intermediate (WTI) crude oil futures fell by 1% to $63.95 per barrel during the early European trading hours on Friday, July 2, 2025. This decline was driven by several factors, including anticipated lower US demand and ongoing concerns about supply disruptions due to the Russia-Ukraine conflict.

The summer driving season in the US is coming to an end, with the Labor Day holiday marking the end of the peak season for gasoline consumption. This decrease in demand is expected to continue in the coming months, which may weigh on the WTI price [1].

Additionally, the Russia-Ukraine conflict has heightened concerns about potential supply disruptions. On Thursday, Russia launched missile and drone attacks on Ukraine, resulting in the deaths of at least 21 people in Kyiv. Meanwhile, the Ukrainian military reported using drones to hit two Russian oil refineries overnight. These developments have raised concerns about potential US sanctions, which could lift the WTI price in the near term [1].

A larger-than-expected decrease in US crude oil inventories last week also supported the WTI price. The US Energy Information Administration (EIA) reported that crude oil stockpiles fell by 2.392 million barrels for the week ending August 22, compared to a decline of 6.014 million barrels in the previous week. This data indicates increased demand, which can push up the oil price [1].

Despite these factors, the WTI price remains volatile due to the ongoing uncertainty surrounding the stability and availability of Russian supply. The market continues to closely monitor developments in the Russia-Ukraine conflict and the potential impact of US sanctions.

References:
[1] https://www.fxstreet.com/news/wti-drops-below-6400-on-demand-concerns-202508290702