WTI Crude Prices Recover Amid Ongoing Supply Disruptions

West Texas Intermediate (WTI) crude oil prices recovered some losses on Friday, trading around $80.80 as investors focused on supply disruptions in the Middle East. This move is part of a tug-of-war between ongoing concerns over global consumption and potential supply shocks.

The Strait of Hormuz and Bab el-Mandeb remain key chokepoints for energy supplies, with current transits sharply below pre-conflict levels. According to Kpler data via Reuters, the number of vessels transiting through the Strait of Hormuz is around 12 per day, compared to the daily average of 130-140 observed before the conflict.

OPEC and IEA have both reduced their forecast for global oil demand growth in 2024, with OPEC revising its estimate down to 580,000 barrels per day from 780,000 previously. The IEA has also cautioned that extended conflicts and elevated prices are starting to curb consumption.