WTI gains ground above $67.00 amid renewed Red Sea attacks

• WTI price drifts higher to around $67.15 in Wednesday’s early Asian session. 

• Simmering Red Sea conflict boosts the WTI price. 

• Crude oil stockpiles in the US unexpectedly rose by 7.1 million barrels last week, said API. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $67.15 during the early Asian trading hours on Wednesday. The WTI price edges higher amid renewed Houthi attacks on shipping in the Red Sea. Oil traders await the US Energy Information Administration (EIA) Crude Oil stockpiles report, which is due later on Wednesday. 

The Middle East conflict between Israel and Iran came to an end last month, when US President Donald Trump announced a truce. Nonetheless, Houthi strikes have caused disruptions in the oil and energy supply and transportation systems. 

Reuters reported late Tuesday that four seafarers on the Liberian-flagged,  Greek-operated bulk carrier Eternity C were killed in a drone and speedboat attack off Yemen, the second incident in a day after months of calm. The escalation in the Red Sea could boost the WTI price, as it is a key route for transporting crude oil from the Middle East to Europe and Asia. 

On the other hand, a surprise gain in US inventories last week might cap the upside for the black gold. The American Petroleum Institute (API) weekly report showed crude oil stockpiles in the US for the week ending July 4 unexpectedly rose by 7.1 million barrels, compared to an increase of 680,000 barrels in the previous week. The market consensus estimated that stocks would decrease by 2.8 million barrels. So far this year, crude oil inventories are up 11 million barrels, according to Oilprice calculations of API data.