Gulf Tensions Send West Texas Intermediate Price Soaring Above $94
The price of West Texas Intermediate (WTI) crude oil surged 2.2% to around $94.64 on Tuesday, pushing its September gain above 9% due to escalating tensions in the Gulf region.
The attacks on Saudi energy facilities and renewed US-Iran hostilities have deepened fears of prolonged supply disruptions, causing WTI to rise almost 5% above Standard Chartered's near-term forecast range of $70-$90.
Standard Chartered had predicted that geopolitical risks would remain limited and that the oil price would trade towards the top of its $70-$90 range, but the latest developments have overtaken this assessment.
The bank estimated Gulf oil flows at around 9.5 million barrels per day, approximately half their pre-conflict level, but falling stockpiles left the market exposed to renewed attacks.