Commodities
Home›Commodities›Energy›Oil rises as renewed Hormuz supply risks lift crude pr…
Oil rises as renewed Hormuz supply risks lift crude prices
August WTI finished near $71.84, up $3.38 or 4.9% on the week, after geopolitical concerns outweighed an OPEC+ output increase and an unexpected U.S. crude inventory build.
Oil prices climbed in the week ending July 10 as traders focused on renewed concerns about global supply, with August WTI last quoted at $71.84 through Thursday evening, up $3.38 or 4.9%. The contract traded in a wide range, moving from $67.82 to a high of $76.08 before retreating late Thursday, according to OilPrice. The weekly gain reflected the market adding a higher risk premium after renewed geopolitical tensions in the Middle East raised questions about the security of oil shipments through the Strait of Hormuz.
Traders said the concerns outweighed bearish pressure from two other developments: OPEC+ had agreed to increase August production targets, and an unexpected build in U.S. crude inventories emerged. Even as prices fell back from weekly highs, OilPrice said the market was positioned to end the week higher because buyers continued to place greater weight on potential supply disruptions than on additional production reaching the market.
OilPrice added that reports of increased tensions involving Iran and concerns about commercial shipping through the Strait of Hormuz helped bring buyers back into crude, despite expectations that additional supply would typically pressure prices. The article also noted that roughly one-fifth of the world's oil flows through the Strait of Hormuz, underscoring the market sensitivity to shipment risks.
Latest closeWTI crude $71.84 ▼2.3%