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WTI falls below $80 as hopes build for Hormuz reopening
WTI was around $79.5, down 9% from last week’s highs above $87, as talks over a potential Hormuz maritime corridor counter sanctions and are ahead of an EIA crude stock report expected to show a 1.9 million barrel buildup.
WTI crude extended its slide on Wednesday, trading near the $79.5 area and marking about a 9% drop from last week’s highs above $87, according to FXStreet.
The reversal was driven by hopes for reduced tensions around the Strait of Hormuz, including reports of technical talks involving Oman and Iran to define a permanent maritime corridor and some US-Iran de escalation expectations.
FXStreet also cited Iran’s position that the US must lift its naval blockade of Iranian ports before free transit through Hormuz is allowed, and noted that a new package of US sanctions against Iran did not stop the decline in oil prices.
Later in the session, the US Energy Information Administration is expected to publish its weekly crude oil stocks change report, with FXStreet pointing to an estimate for a 1.9 million barrel buildup for the week of August 21, following a 4.4 million increase the previous week.
Latest closeWTI crude $82.40 ▲1.4%