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WTI hovers near six-week high amid Middle East tensions and lower US stocks
WTI traded around $89.70 per barrel after an intraday high of $90.78, supported by a 4.45 million barrel weekly drop in US crude inventories.
WTI crude was steady near a six-week high as escalating Middle East tensions boosted volatility and kept a geopolitical risk premium in energy prices, FXStreet reported. At the time of writing, WTI traded around $89.70 per barrel after reaching an intraday high of $90.78, its highest level since July 24.
The upside support was tied to signs of tightened supply risk, including an IRGC statement that two oil tankers struck naval mines while attempting to transit a waterway. The report said the vessels were disabled and their crews forced to disembark after warnings were ignored.
Additional support came from US inventory data. According to the Energy Information Administration, crude stocks fell by 4.45 million barrels last week, versus expectations for a 1.1 million barrel draw, and the move reversed the previous week’s 95,000 barrel increase.
Looking ahead, traders are focused on an OPEC+ meeting on Sunday, with Reuters reporting that the group is likely to leave its October production policy unchanged. On the technical side, WTI was described as holding above its 100-day and 200-day simple moving averages, while the $90 to $92 area was flagged as near-term resistance.
Latest closeWTI crude $90.70 ▲0.5%