WTI Oil Prices Hold Steady Amid Escalating Middle East Tensions

West Texas Intermediate (WTI) oil prices held steady near $92.00 on Friday, despite the US considering sending more troops to the Middle East. The move is in response to increased tensions with Iran, following President Donald Trump's statement that 'possible' military strikes against the country were on the table after the November midterm elections.

The Energy Information Administration (EIA) reported a surprise increase in US crude oil inventories last week, rising by 922,000 barrels compared to a surge of 2.969 million barrels in the previous week. Analysts warn that another price spike is possible due to low inventory levels and the risk of escalation in the Middle East.

Societe Generale's Kit Juckes notes that banning oil exports could lead to diesel accumulating in storage tanks rather than lowering prices for US consumers. He also flags potential macro implications, pointing out that Eurozone growth forecasts may be revised downward if bond yields and oil prices continue to rise.