WTI Oil Rises Amid Geopolitical Uncertainty
The price of West Texas Intermediate (WTI) US Oil rose by 0.76% to around $83.30 on Friday, staging a sharp rebound from an intraday low below $80.00.
This increase erases some of the weekly losses and puts oil prices on track to finish the week close to their opening levels after a bearish gap seen at the start of the week.
The market sentiment has improved as investors reassess the impact of shipping disruptions through the Strait of Hormuz, with oil tanker traffic recovering to around 30%-35% of its pre-conflict level, according to CommBank.
However, geopolitical risks continue to provide strong support for Oil prices, with ongoing tensions between Iran and the US remaining a major source of uncertainty, while threats to energy infrastructure and key shipping routes maintain a geopolitical risk premium in the market.