WTI Crude Prices Slump on Diplomatic Hopes and Growing Supply Risks
West Texas Intermediate (WTI) oil prices continued to decline on Friday, falling below $82.50 per barrel due to renewed hopes for a diplomatic solution to the US-Iran conflict.
Pakistan's Foreign Ministry spokesperson Tahir Andrabi confirmed that negotiations between the two countries are ongoing to restore stability in the Strait of Hormuz, a critical waterway through which millions of barrels of crude oil pass every day.
Shipping traffic in the region has increased significantly following the successful escorting of several tankers by the US Navy, easing concerns over supply disruptions.
The increase in tanker traffic and the diplomatic efforts have led TD Securities to caution that 'supply risks keep piling up' despite investors focusing on positioning and short-term flows.