• WTI trades in negative territory near $77.20 in Wednesday’s Asian session. 
• Less fears of a wider Middle East war and slowing global demand concerns undermine the WTI price. 
• API reported a significant fall in US crude inventories last week. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $77.20 on Wednesday. WTI price edges lower on the back of easing fears of a wider Middle East war and concerns about the strength of global oil demand. 

The ongoing geopolitical tensions in the Middle East could raise the fear of crude oil supply disruptions from a leading oil-producing region, but the wider war seemed less likely as Iran suggested renewed cease-fire talks with Hamas could prevent retaliation.

The International Energy Agency (IEA) forecasted that growth in crude oil demand would slow as the summer US driving season ended in the coming weeks, and be further covered when planned production increases hit the market later this year. Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) lowered its prediction for global oil demand growth in 2024, citing weaker-than-expected data from the first half of the year and less optimism for the Chinese economy.