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WTI rises to $83.50 as Strait of Hormuz reopening hopes fade
WTI is up nearly 10% from last week’s close as shipping through the Strait of Hormuz stays restricted, with only six vessels crossing on Monday versus recent averages of 10 to 11.
Oil prices extended a rally for a second consecutive day, with US benchmark West Texas Intermediate trading around $83.50 during the European session, FXStreet reports.
The move was driven by waning expectations for a US and Iran peace deal and fresh Middle East uncertainty, after the two sides failed to agree on a path to reopen the Strait of Hormuz.
FXStreet cited shipping data that traffic through the waterway remains a trickle, with only six vessels crossing on Monday, below the 10 to 11 average in recent weeks and versus the 130 to 160 ships that crossed before the war began in February.
The outlet also noted that Strait of Hormuz restrictions can affect petroleum supply flows, helping lift prices as the region’s political developments and negotiation outlook shift.
Latest closeWTI crude $82.30 ▲5.3%