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WTI oil rises to a three-week high on Middle East supply risks

WTI traded around $85.2 a barrel, nearly 1% higher on the day, even as US crude inventories rose by 4.4 million barrels in the week ended Aug. 14.

Reported · Written up by our desk · Energy

WTI oil climbed to its highest level in more than three weeks as supply risks in the Middle East continued to support prices, according to FXStreet. At the time of writing, the US benchmark traded around $85.20 per barrel, up nearly 1% on the day.

The move also came alongside new inventory data from the US Energy Information Administration, which showed crude oil inventories increased by 4.405 million barrels in the week ending Aug. 14. Markets had expected a 0.6 million barrel decline.

Negotiation uncertainty around the Strait of Hormuz remained in focus after a 60-day memorandum of understanding between the United States and Iran expired on Monday, FXStreet said. Tehran has said the waterway will stay closed until Washington meets the conditions of the interim agreement, and talks between Iran and Oman have not produced meaningful progress.

FXStreet cited shipping activity limits as another factor for the near term, noting that Kpler data showed only six commodity vessels crossed the Strait on Tuesday, down from nine on Monday and below a recent daily average of 11. The report also flagged that WTI held above its 21-day simple moving average near $82 and that a break above the 100-day level around $86 could test the July high near $92.25.

Latest closeWTI crude $82.40 ▲1.4%

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