WTI Oil Rebounds Amid Geopolitical Risks
WTI Oil prices have recovered some of their losses from Tuesday, when they fell to their lowest level since September 4. The price rebounded to around $90 on Wednesday, putting it on track for a monthly gain of about 5.5%. This comes despite the lack of progress in US-Iran negotiations to reopen the Strait of Hormuz, which has kept geopolitical risks elevated.
The news that Saudi Arabia had resumed tanker loadings at Yanbu after restarting its East-West pipeline may have contributed to the price increase. Additionally, Goldman Sachs estimated that Gulf Oil exports recovered to around 23.3 million barrels per day last week, matching their 2025 average. The US also announced it would offer up to 40 million barrels from its Strategic Petroleum Reserve.
Data released by the US Energy Information Administration (EIA) showed that crude inventories increased by 922,000 barrels last week, which was above market expectations for a decline of around 300,000 barrels. However, this increase is still much smaller than the previous week's 2.969 million-barrel build.