Oil prices slipped in early Asian trading as WTI crude futures dropped 0.8% to $68.04 a barrel, pressured by mounting evidence of expanding global supply. The decline reflects a tangible shift in market dynamics rather than speculative positioning.

ANZ Research analysts point to a media report citing a U.S. official who said American military support has helped lift oil flows above 10 million barrels a day. Simultaneously, indirect talks between Washington and Tehran in Doha have shown progress, reducing the immediate risk of confrontation.

That diplomatic movement has calmed fears that renewed conflict could choke transit through the Strait of Hormuz, the critical chokepoint for roughly one-fifth of global petroleum shipments. Supply-side relief now outweighs geopolitical risk premium in near-term pricing.

The market is pricing in a more comfortable balance for the moment, with physical availability improving just as demand signals remain mixed across major consuming nations.