Weekly Crude Oil Review: WTI futures rebound from three-week low but shed around 9% for week

WTI crude oil prices climbed as renewed tensions in the Strait of Hormuz unsettled global markets, casting fresh doubt over efforts to fully reopen the vital shipping route. Tensions were further heightened by a proposed Iran-Oman agreement governing the strategic waterway. Reports stated that Tehran seeks to prohibit United States (US) and Israeli vessels from transiting the strait and require countries deemed hostile to pay compensation before being granted passage. US officials reiterated their confidence that a nuclear agreement with Iran was within reach, although investors remained cautious about the prospects for a durable and lasting peace. WTI Crude edged up from three-week low but still ended down around 9% for this week. Meanwhile, the US crude supplies stay steady. The US crude oil imports averaged 6.2 million barrels per day last week, increased by 515 thousand barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 5.8 million barrels per day, 4.4% less than the same four-week period last year. EIA noted that commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 2.5 million barrels from the previous week.

Powered by Commodity Insights