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WTI slides near $81 as tanker traffic remains low
WTI is down about 9% from Friday near $89.00, while limited movement through the Strait of Hormuz suggests supply risk has not tightened.
WTI crude traded just above $81.00 on Monday, extending losses after a sharp gap down from Friday's close near $89.00. The move reflects a repricing of Middle East risk, with crude down close to 9% over the period and the session extending the drop rather than stabilizing.
Brent broke below the $90.00 level for its steepest single session since an April ceasefire, as Washington paused its strike campaign after 13 consecutive nights and a third day passed without attacks. The American president said there was time for talks and that operations would resume with greater force if negotiations failed, and reporting also described the pause as coming at Tehran's request.
Iran's foreign ministry said there were currently no negotiations with the United States and that its only active channel is with Oman on the future of the Strait, while deputy foreign ministers met in Tehran to discuss safe passage. Iranian officials also said maritime traffic status through the Strait had not changed.
The reason behind the stand down appears to be key for markets, with coverage attributing the pause partly to advisers warning the campaign was running short of viable targets and drawing down munitions faster than was comfortable. The story also points to fewer than 10 commodity vessels transiting the Strait of Hormuz per day over the weekend, and says the market has not priced in any factor that would constrain supply even as crude has repriced nearly a tenth of its value in a session.
Latest closeWTI crude $81.92 ▼8.3%|Brent $87.83 ▼9.2%