WTI Oil Prices Soar Near Six-Week High Amid Middle East Tensions
WTI Oil prices are fluctuating near a six-week high as tensions in the Middle East continue to fuel volatility in energy markets. The price of West Texas Intermediate (WTI) oil reached an intraday high of $90.78, its highest level since July 24, before settling around $89.70 per barrel at the time of writing.
The Iranian Revolutionary Guard Corps (IRGC) said two oil tankers were damaged by naval mines while trying to transit a waterway, further exacerbating tensions in the region. Additionally, US crude stocks fell by 4.45 million barrels last week, well above expectations for a 1.1-million-barrel draw.
According to strategists at Brown Brothers Harriman, 'further upside in oil prices appears limited as Persian Gulf oil exports recover.' They highlight Goldman Sachs estimates that oil flows from the region have returned to roughly two-thirds of their pre-war level of 20 million barrels per day. This suggests supply disruptions are easing even with elevated geopolitical tensions.