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WTI rises toward $87 as Middle East supply risks outweigh US inventory build
WTI was up 0.6% to about $86.5, even as US crude inventories rose by 4.4 million barrels in the week ending Aug. 14, according to the EIA.
West Texas Intermediate crude prices moved higher on Friday, trading around $86.5 and up 0.6% on the day, as supply tensions linked to the Middle East continued to outweigh a larger US inventory build. WTI stayed near Thursday’s peak of $87.38, its highest level in more than three weeks.
The price support was driven by ongoing risks to regional oil flows, with the United States and Iran showing no signs of progress on restoring navigation through the Strait of Hormuz. The continued closure of the strategic waterway, along with disruptions in the Bab el-Mandeb Strait, keeps a risk premium embedded in energy prices, FXStreet reported.
Tensions have also been heightened by Red Sea developments, including claims by Yemen’s Iran-backed Houthis that they targeted several Saudi oil tankers since late July. FXStreet said concerns that escalation could disrupt crude exports and reduce global supply remain a key near-term factor.
Geopolitical support was partially offset by US data, with the EIA reporting that US crude oil stocks rose by 4.405 million barrels in the week ending Aug. 14, versus expectations for a 600,000 barrel decline. FXStreet noted that if inventory builds continue, they could limit further oil gains.
Latest closeWTI crude $82.40 ▲1.4%