WTI Crude Oil Price Falls Despite Ongoing Middle East Tensions
The West Texas Intermediate (WTI) crude oil benchmark is trading around $80.50 on Friday, despite ongoing tensions in the Middle East.
The price of WTI has tumbled as traders took profits after a sharp rally in the previous day. The Strait of Hormuz, a critical waterway, saw 14 commodity vessels transit through it on Wednesday, up from single digits last week, according to Kpler.
Ongoing hostilities in the Middle East may continue to underpin oil prices, with Iranian Parliament Speaker Mohammad Bagher Ghalibaf stating that the United States will 'pay the price' for killing Iranian civilians. The Islamic Revolutionary Guard Corps (IRGC) targeted US bases in Kuwait, Jordan, and Bahrain after a US bombing on Iran's Qeshm Island.
The US Energy Information Administration (EIA) reported that crude oil stockpiles fell by 7.167 million barrels last week, more than expected. OPEC+ is expected to confirm a further supply increase when it meets on August 2, with analysts at ING projecting an additional 188k b/d for September.