Weekly Crude Oil Review: WTI futures hold around four-week high

WTI Crude oil prices extended upside after breaking above $80 per barrel and hit around a four-week high amid US-Iran standoff over the Strait of Hormuz. The US and Iran remain unresolved over restoring safe commercial navigation through the strategic Strait of Hormuz, fueling supply concerns and acting as a tailwind for crude oil prices. WTI crude oil futures added around 5% this week, gaining for a second week. Meanwhile, media reports suggest President Donald Trump said the US will launch the most crushing economic operation against Iran and threatened severe penalties on any nation that helps Tehran evade sanctions or does business with Iran. This can keep sentiments supported for oil in near term. Comfortable US crude inventories can curb sharp upside though. Crude oil inventories in the United States saw an increase of 4.4 million barrels during the week ending August 14, according to latest data from the US Energy Information Administration. The increase brings commercial stockpiles to 428.8 million barrels, according to government data, which is now right about at the five-year average for this time of year.

Powered by Commodity Insights