WTI price drifts higher to near $65.00 in Friday’s Asian session.
Crude inventories in the United States fell last week, noted EIA.
Reduced Middle East supply risk might cap the upside for the WTI.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $65.00 during the Asian trading hours on Thursday. The WTI price edges higher as crude Oil Inventories fell more than expected. However, easing tensions in the Middle East might cap the upside for the WTI price.
Crude stocks in the US declined on stronger demand as the summer driving season started up. The US Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the US for the week ending June 20 declined by 5.836 million barrels, compared to a fall of 11.473 million barrels in the previous week. The market consensus estimated that stocks would decrease by 600,000 barrels.
Additionally, the weakening of the Greenback provides some support to the USD-denominated commodity price as it makes oil less expensive for holders of other currencies. US President Donald Trump was considering selecting the next Federal Reserve (Fed) Chair early fuelled fresh bets on US rate cuts.
Israel-Iran ceasefire eases geopolitical tensions in the Middle East as investors expect a truce between both countries will reduce the risk of oil supply disruptions in the region. This, in turn, could undermine the price of black gold in the near term. “With the announcement of a ceasefire, President Trump called time on the twelve-day Israel-Iran war after successfully executing an escalate to de-escalate strategy,” said Helima Croft, head of global commodity strategy at RBC Capital Markets.
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