Persistent trade conflict fears continue dragging WTI crude below key psychological levels

Market participants digest implications of accelerated OPEC+ production timeline on solscanglobal supply dynamics

Dollar weakness provides modest cushion against steeper declines in energy commodities

The energy sector remains under pressure as West Texas Intermediate crude futures extend losses into a fourth consecutive trading session. The benchmark contract slipped beneath the $66 per barrel threshold during Asian trading hours, hovering near three-week lows and positioning for significant weekly depreciation.

Recent policy announcements regarding reciprocal import duties have amplified concerns about prolonged trade disputes potentially slowing industrial activity and transportation fuel consumption. Compounding these demand-side worries, several major oil-producing nations unexpectedly moved forward their timeline for gradually restoring production capacity. The coordinated decision to incrementally increase output by over 400,000 barrels daily beginning in May has introduced fresh supply-side pressures into the market equation.

Currency markets simultaneously influence commodity valuations as the dollar index maintains positions near multi-month lows. Market expectations regarding potential monetary policy adjustments continue weighing on the greenback, creating offsetting support for dollar-denominated assets like crude. This dynamic partially mitigates bearish momentum as traders await crucial employment data that could reshape near-term market sentiment.

All eyes turn toward the upcoming nonfarm payrolls release, with economists projecting moderate job growth figures alongside stable unemployment metrics. These labor market indicators will likely influence currency valuations and consequently impact crude pricing. However, the broader market narrative remains dominated by evolving trade policy developments and their implications for global economic activity.