Snapshot: WTI Crude is trading at $69.81, down 0.75% on the day. The primary driver remains the reopening of the Strait of Hormuz, flooding markets with supply and erasing recent gains. Today’s US Core PCE and GDP data at 08:30 ET will be key for sentiment.
- US Crude Stocks: EIA data showed a draw of 6,088k bbl for the week ending June 19th, but this is overshadowed by the supply surge from Hormuz.
- Risk of OPEC+ dissent: Iraq’s warning about quitting OPEC if its quota isn’t raised highlights internal pressures on production policy.
Bias into NY: Bearish. The supply shock from Hormuz reopening is the dominant force, pushing WTI towards $68.00. While strong GDP or PCE could offer a brief reprieve, the structural supply increase points to further downside.