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WTI slips below $90.50 as Middle East supply risks persist
WTI was about $90.40 per barrel, after a near 10% rally last week tied to escalating attacks that have disrupted shipping near the Strait of Hormuz.
West Texas Intermediate crude edged lower in Asian trading, hovering around $90.40 per barrel despite continued worries about supply disruptions in the Middle East. FXStreet cited Iran’s pledge to strike energy infrastructure following further US attacks on Iranian assets as a key reason investors remain focused on the region’s oil flows.
Crude prices surged nearly 10% last week on renewed fighting and heightened risk of deeper energy disruptions, with both sides stepping up attacks over the weekend on ships and military vessels around the Strait of Hormuz. Saudi Aramco’s facilities in Jazan near the Red Sea were targeted again on Monday, though damage was reported to be limited.
The Strait of Hormuz remains central to the supply outlook, with Iran saying an agreement with Oman to manage shipping through the waterway is nearing completion. US tight domestic inventories also add pressure to the broader balance, with Reuters cited PVM Energy analysts saying gasoline and distillate fuel stocks are substantially below year-ago and five-year seasonal averages.
Even with the geopolitical risk premium, oil continues to move, with roughly 7 million barrels a day of crude and refined products passing through the Strait of Hormuz. Societe Generale said signals of a large pullback in Brent were not visible, and noted that last week’s low near $89 could offer short-term support.
Latest closeWTI crude $90.70 ▲0.5%|Brent $95.32 ▲0.7%|Gasoline (RBOB) $3.096 ▼1.2%