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WTI nears $100 as Middle East tensions stoke supply fears
WTI was around $99 a barrel, up nearly 5% on the day and about 10.5% for the week, after a weekly drop in US crude inventories reported by the EIA.
WTI crude climbed nearly 5% on Thursday, reaching its highest level since May 21 as escalating Middle East tensions heightened fears of further supply disruptions.
According to FXStreet, the move followed a recent escalation between the United States and Iran that increased security risks around the Strait of Hormuz, where shipping has faced heavy restrictions since the war began in late February. The report also pointed to renewed concerns about missiles production from Iran, plus Iran-linked Houthis seizing Yemen’s port of Mocha, which raised risks for shipping routes through the Red Sea and the Bab el-Mandeb strait.
FXStreet added that the EIA data showed US crude oil inventories fell by 391,000 barrels, short of expectations for a 1.6 million-barrel decline after inventories dropped by 4.45 million barrels the prior week. In the same period, the EIA raised its 2026 average WTI price forecast to $84.65 per barrel.
On the demand outlook, FXStreet noted OPEC delivered a mixed message, lowering its 2026 global oil demand growth forecast to 380,000 barrels per day from 580,000 bpd, while raising its 2027 estimate to 2.36 million bpd from 2.16 million bpd. It also said global oil inventories have fallen by roughly 400 million barrels so far this year and are expected to decline further through year-end as Middle Eastern volumes remain offline.
Latest closeWTI crude $97.01 ▲4.3%