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WTI rebounds after five straight session losses amid oil supply uncertainty
US crude inventories rose by 2.969 million barrels last week versus expectations for a 0.7 million barrel draw, helping temper the pullback.
WTI crude snapped back Wednesday after five straight days of losses as traders weighed developments in Middle East diplomacy and fresh US stock data, with the contract trading around $92, up more than 2.5% from the prior session.
The rebound came as indirect US-Iran talks, held on the sidelines of the UN General Assembly in New York, did not produce a breakthrough, though Iranian officials said reopening the Strait of Hormuz and lifting the US blockade were discussed. Saudi Arabia’s restart of its East-West pipeline eased some supply concerns, but shipping through Hormuz remains severely restricted.
Shipping activity still points to a constrained flow, with preliminary Kpler data cited by FXStreet showing three commodity vessels crossing on Tuesday, down from four on Monday and below the recent 10-day average of about 15.
At the same time, the US Energy Information Administration reported crude inventories increased by 2.969 million barrels last week, reversing expectations for a 0.7 million barrel draw after a 0.64 million barrel decline the prior week, according to FXStreet.
Latest closeWTI crude $91.79 ▼3.0%