WTI Crude Falls Amid Hormuz Tensions
Oil prices trimmed gains on Friday as investors awaited the outcome of Iran-Oman negotiations to reopen the Strait of Hormuz, which could potentially alleviate supply disruptions. The US benchmark West Texas Intermediate (WTI) traded just below $76.00 at the time of writing, on track for a 10% weekly decline.
Rabobank analysts cautioned that the current drawdown in global stockpiles remains substantial, with the world still drawing down about 2-5 million barrels per day depending on the situation. They warned that the savings account of inventories won't last forever, underscoring the limits of using stored crude and products to cushion ongoing supply disruptions.
US President Donald Trump showed optimism about a swift ending of the conflict, stating that the Strait of Hormuz is 'sort of open' and under US control. However, he warned about the possibility that Iranian forces could shoot something or drop a mine.