Crude Market Rebounds Despite Middle East Tensions
The crude oil market saw a significant recovery from its early losses on Wednesday, settling at USD 1.04 higher at $90.42/bbl. The rebound came despite concerns over US-Iran talks and an attack by the Houthis on the Abqaiq oil city in Saudi Arabia.
The WTI crude price had initially extended Tuesday's losses, hitting a low of USD 88.58/bbl in the European morning. However, it soon reversed course, with some attributing the recovery to the FlyDubai incident, which was later reported to be caused by a rogue pilot.
OPEC+ producers are expected to keep their output targets unchanged at Sunday's meeting, sources suggested. Meanwhile, the EIA data showed a larger-than-expected build in crude stocks, while distillates and gasoline posted draws.
The Kpler data indicated that crude oil exports from the Strait of Hormuz have returned to pre-war levels, thanks to US military escorts boosting shipments and pipelines redirecting flows. However, JPMorgan emphasized that refined product supplies remain constrained.