WTI crude fell below $60 per barrel as easing Middle East tensions and weak China–U.S. sentiment erased much of oil’s geopolitical risk premium. The relatively successful implementation of the Israel-Gaza ceasefire deal has lowered geopolitical risk premiums in oil futures and sent front-month ICE Brent prices below $64 per barrel. The evident escalation in China-US tensions isn’t adding any bullish momentum to crude either, with all signs pointing towards a 2026 impact on global trade if the current pace of sanctions and reciprocal levies doesn’t ease.
NN: Markets got it wrong. China will not be buying less oil. Trumps sanctions are a bluff. Gaza is not part of the oil equation. Last thing oil under $60 WTI means the cure for lower oil prices are lower oil prices. Because oil fracking wells in the US shut down.