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WTI dips below $74 as Middle East tensions keep a floor under oil
WTI was around $73.1, down 1.9% on the day, even as traders weighed reports of rising US commercial crude inventories and renewed Iran-US escalation risks.
West Texas Intermediate crude traded lower on Thursday, hovering around $73.1, after investors took profits following two straight sessions of strong gains, FXStreet reported. WTI was down 1.9% on the day at the time of writing, after slipping below the $74 level.
Even with the pullback, the downside appeared limited as heightened Middle East tensions continued to support oil prices, according to FXStreet. The outlet cited increased US and Iran confrontation risks, including a fresh round of US strikes on Iranian positions, Tehran attacks on US military sites in the Gulf, and renewed concerns about escalation as the US President said the Iran memorandum of understanding is no longer in effect.
Markets also remained focused on the Strait of Hormuz, a major shipping route for global oil supplies, FXStreet said. Iran threats to close the waterway are keeping a geopolitical risk premium in crude.
In the background, a US Energy Information Administration update showed commercial crude inventories rose by 3.0 million barrels in the week ending July 3, the first build in 11 weeks and above expectations. FXStreet noted the EIA data had little immediate impact on price action as traders prioritized geopolitical developments over near-term supply fundamentals.
Latest closeWTI crude $81.23 ▼1.7%