During early Asian trading hours, US crude oil futures declined by more than 1%, settling at $89.60 per barrel, driven by market expectations of increased supply from the Gulf region.

This price movement reflects growing investor sentiment that additional barrels could soon enter the global market, easing concerns over tightness. The futures contract for West Texas Intermediate, the benchmark for US oil, saw its value drop as traders positioned themselves for potentially softer pricing ahead.

The anticipated boost in Gulf output, often linked to geopolitical developments and production decisions by key exporters, has prompted a cautious outlook among market participants. While demand signals remain mixed, the supply-side narrative currently takes precedence, weighing on crude valuations.