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WTI rebounds above $83 ahead of OPEC+ meeting
WTI climbed 0.76% to about $83.30 after falling below $80 intraday, as shipping through the Strait of Hormuz recovered to roughly 30% to 35% of pre-conflict levels.
WTI crude traded higher on Friday, gaining 0.76% to around $83.30 after a sharp rebound from an intraday low below $80.00, helped by an improved market outlook after investors reassessed the impact of shipping disruptions through the Strait of Hormuz, according to FXStreet.
FXStreet cited estimates that oil tanker traffic through the strategic waterway has recovered to about 30% to 35% of its pre-conflict level, which could ease pressure on global supply and explain some of the recent volatility. The report also said geopolitical risks remain a key support for crude, with ongoing tensions between Iran and the United States and threats to energy infrastructure and shipping routes maintaining a risk premium.
On fundamentals, the outlet pointed to US Energy Information Administration data showing a larger-than-expected decline in US crude inventories, indicating a still-tight market. FXStreet added that investors are now looking to this weekend’s OPEC+ meeting, where several analysts expect only a modest increase in September production targets, with delivery dependent on the Strait of Hormuz remaining open and Gulf producers restoring export flows.
FXStreet further reported that TD Securities expects constrained supply dynamics, citing materially limited flows via Hormuz, Bab el-Mandeb, and Russia, with global seaborne exports near the lowest levels since the war began. The outlet also referenced TD Securities commentary that reduced flows and tighter energy conditions could support further upside in crude, while noting positioning remains mixed across the complex.
Latest closeWTI crude $86.80 ▲3.8%