Crude oil retreated as geopolitical tensions showed signs of cooling. WTI slipped lower this week, a pullback that caught many traders' attention given the recent risk-on sentiment dominating markets. What's driving the weakness? Inventory data tells the story—crude stockpiles expanded across the board, signaling softer demand momentum amid broader economic uncertainty.

The inventory build is particularly noteworthy. When storage levels rise while prices fall, it typically reflects a mismatch between supply and consumption. For macro traders and crypto investors watching energy markets as a barometer of global risk appetite, this matters. Lower energy prices often correlate with reduced inflation pressures and could influence central bank policy decisions down the line.

The easing of geopolitical risk shouldn't be taken as pure relief either. Markets remain fragile, and any fresh tensions could quickly reverse these gains. For now, the combination of cooler headlines and rising inventories has created a headwind for crude. Watching how WTI stabilizes in the coming weeks will tell us plenty about whether this dip is temporary or signals a broader shift in commodity market structure.