Oil Futures Dip Amid U.S. Inventory Drop and Iran Tensions

Oil futures declined in early Asian trade on September 2, 2026, ending a streak of three consecutive sessions of gains. Front-month WTI crude oil futures dropped 0.4% to $90.68 per barrel, a movement market analysts attributed to a technical correction.

Losses remained limited as traders weighed the risk of escalating strikes between the United States and Iran, which could disrupt oil flows from the Middle East. This geopolitical instability provided a floor for prices despite the immediate downward trend.

Adding to the market volatility, the Energy Information Administration reported a significant decrease in domestic crude oil inventories for the week ending August 28. Commercial stocks fell by 4.5 million barrels, a figure that far exceeded the 300,000-barrel decline predicted by analysts.