Middle East Export Recovery Boosts WTI Oil Prices Amid Ongoing Global Supply Disruptions

WTI oil prices edged higher on Wednesday after falling nearly 4.5% in the previous day, trading around $88.50 per barrel during Asian hours. The price gain was attributed to improved energy flows from the Middle East, with the 10-day average of crude exports from the region recovering to 17.5 million barrels per day, reaching 98% of pre-war levels.

Saudi Arabia's resumption of crude exports through its East-West pipeline at roughly half its capacity and a steady stream of covert shipping continuing through the Strait of Hormuz also contributed to the price increase.

However, another major release of emergency reserves in the US helped alleviate lingering supply concerns, adding downward pressure on prices. The US government plans to tap the Strategic Petroleum Reserve (SPR) for up to 40 million barrels to combat soaring fuel costs at home.

Industry data indicated that US crude inventories rose by 1 million barrels last week, furthering bearish sentiment. Despite recent pullbacks, the US oil benchmark remains on track for a third consecutive monthly gain, driven by ongoing support from the prolonged US-Iran conflict and disruptions to global supply.