Crude Oil Prices Hold Steady Amid Iran Risks and US Inventory Surge
Crude oil prices have stabilized this week as traders weigh rising Middle East supply risks against a surge in U.S. inventories and weakening global demand forecasts.
The Brent crude futures price stood at $87.08 per barrel on August 14, while West Texas Intermediate (WTI) crude was trading above $81.31, leaving both benchmarks poised for weekly gains of around 4%.
A prolonged naval blockade of Iran by the United States and ongoing restrictions on traffic through the Strait of Hormuz are major threats to global oil supply, with about 20% of global oil flows passing through the waterway.
However, a huge build-up in U.S. commercial crude inventories, which surged 17.4 million barrels to 424.4 million barrels in the week ended August 7, is limiting crude's ability to extend its recent rally.