Oil Prices Poised for Monthly Surge Amid Ongoing Mideast Tensions
Crude oil prices have been trending lower over the past couple of days, but both Brent crude and West Texas Intermediate are on course to book a monthly gain. On a monthly basis, Brent crude and WTI have both gained close to 20%. The current price for Brent crude is $87.67 per barrel, while WTI trades at $82.07 per barrel.
The number of tankers crossing the Strait of Hormuz has not returned to pre-conflict levels, but any news of improvement in traffic results in lower futures prices. ING commodity strategists noted that transponders will be turned off for these tankers, making their presence undetectable by tracking data.
However, on the bullish side, the U.S. Strategic Petroleum Reserve is running low, and releases will have to stop soon. This has helped keep prices under control in previous months, but once the draws end, prices are expected to rise.