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West Texas Intermediate (WTI) crude oil extended its declining trend for the third straight session, dropping to around $80.10 per barrel during Wednesday's Asian trading session. The downward movement comes as diplomatic efforts in the Middle East intensify, calming supply disruption fears, alongside easing concerns regarding immediate US trade sanctions. Oil prices remain highly sensitive to geopolitical developments and global supply dynamics. The recent pullback reflects a reduction in the geopolitical risk premium that had previously built up in the market, allowing commodity traders to refocus on broader demand fundamentals and macroeconomic conditions. Going forward, market participants will focus on upcoming inventory reports from the US Energy Information Administration (EIA) and OPEC policy updates. Energy investors across the MENA region will be tracking these developments closely, as crude price fluctuations directly impact fiscal balances and budget outlooks for major regional oil exporters.
