Commodities
WTI Crude Price Drops 4.5% as Hormuz Reopening Expectations Rise
The price of WTI crude oil has dropped by 4.5% this week, as expectations that the Strait of Hormuz could reopen have reduced the geopolitical risk premium in oil markets.
According to the latest data, just seven commodity ships transited the strait on Thursday, compared to the 10-day average of 15. This has led to a decrease in the disruption premium linked to the Strait of Hormuz, with WTI dropping 4.47% over the week, settling at $83.17 a barrel.
The US crude inventories increased by 95,000 barrels last week, reaching 428.9 million barrels. The decision signals a wager on gradual supply increases, rather than signaling a peace breakthrough.