WTI crude oil futures experienced upward pressure, surpassing $66 per barrel, driven by geopolitical concerns stemming from tensions with Iran and potential disruptions in the Strait of Hormuz. This was weighed against a substantial increase in US crude inventories, leading to a mixed market outlook as traders await further developments from nuclear talks and official inventory data.
- WTI crude oil futures rose above $66 per barrel.
- Geopolitical risks, particularly related to Iran, are supporting prices.
- President Trump warned Iran of “very bad consequences” if enrichment demands are not met.
- Reports indicate Iran is seeking Chinese anti-ship missiles.
- US crude stockpiles surged by 11.43 million barrels last week.
- Global supply currently exceeds demand.
- Investors are awaiting EIA inventory data and the outcome of nuclear talks.
The interplay of factors suggests a period of uncertainty for the asset’s price. On one hand, potential supply disruptions due to geopolitical instability could drive prices higher. On the other hand, a significant build in inventories suggests ample supply, which could exert downward pressure. The outcome of upcoming diplomatic discussions and official inventory reports will likely play a crucial role in determining the asset’s short-term trajectory.