WTI Climbs Near 89.50 on Middle East Supply Risks and Persian Gulf Recovery

West Texas Intermediate (WTI) crude oil extended its gains for the second day, reaching near $89.50 per barrel during Asian trading on Wednesday. The rise was driven by ongoing supply risks in the Middle East, particularly attacks on tankers in the Strait of Hormuz and Houthi missile interceptions. The UK Maritime Trade Operations reported nine incidents this month, while a Saudi-led coalition intercepted a ballistic missile launched by the Houthis toward Saudi Arabia.

However, the upward momentum in oil prices was tempered by signs of recovering supply from the Persian Gulf. Despite heightened risks, tankers continue to pass through the Strait of Hormuz, and Saudi Arabia’s East-West oil pipeline has restored its crude pumping capacity to 5.8 million barrels per day. These factors are helping to balance the market, though disruptions persist.

TD Securities noted that while crude oil is facing pressure from increasing flows, the additional barrels are being absorbed by stronger demand and ongoing disruptions linked to Iran and Houthi activity. This leaves the broader balance for crude benchmarks tighter than headline flow data alone might suggest.