why is oil price dropping

@randolf_mercer - 4 months ago - Fundamental Analysis

Guys, I noticed US Oil Price has been in decline for some days now and I wonder why, any ideas please?

@liam_calgary - 4 months ago

I guess oil price is falling due to selling pressure triggered by Trumps 50-day ultimatum to Russia to start peace talks with Ukraine or else sanctions will set in. I guess those with long positions are selling off due to fear and uncertainty & this is pushing the oil price downwards.

@scooter_mx - 4 months ago

US crude oil inventories have been dropping since June 2025 which means the US is exporting more oil and supply is exceeding demand so oil prices will naturally fall.

@scooter_mx - 4 months ago

See screenshot of US Oil Inventory data gotten from the United States Energy Information Administration (EIA). You will notice a drop in inventory figures in the month of June. This can cause oil prices to drop too.

Drop in inventory = More oil exports by the US = over supply = lower oil prices