WTI Crude Oil Prices Rebound Amid Ongoing Middle East Tensions
West Texas Intermediate (WTI) crude oil rebounded on Wednesday after five consecutive days of losses, as traders responded to the latest developments in the Middle East and US inventory data.
The price of WTI traded around $92 at closing, up over 2.5% on the day, recovering from an intraday low of $88.27, its lowest level in more than two weeks.
US Secretary of State Marco Rubio described the indirect talks between US and Iranian officials as 'positive, but it was not a breakthrough.' The discussions took place on the sidelines of the UN General Assembly in New York on Tuesday.
Rubio's remarks were echoed by a senior Iranian official, who told Reuters that many differences remain between the two countries' positions, but diplomacy continues. The official stated that reopening the Strait of Hormuz and lifting the US blockade were discussed during the talks.
The restart of Saudi Arabia's East-West pipeline has eased some supply concerns, but shipping through Hormuz is still severely restricted. Preliminary data from Kpler showed three commodity vessels crossing on Tuesday, down from four on Monday and below the recent 10-day average of about 15.