WTI posts modest gain above $65.00 on rising supply concerns
Trending Articles- International Oil Prices Retreat Rapidly; G-7 to Discuss Emergency Oil Reserve Release
- Goldman Sachs Raises Oil Price Forecasts and Warns Oil May Break All-Time Highs if Strait of Hormuz Disruption Persists
- Crypto’s Great Recovery: Is the Post-Conflict Surge a Sustainable Rally or a Sophisticated Bull Trap?
- WTI recovers to near $86.50 as Strait of Hormuz remains closed
- Gold slumps to near $5,050 on oil-driven inflation fears, stronger US Dollar
- WTI climbs above $95.50 as Iran says the Strait of Hormuz must remain closed
WTI price trades with mild gains near $65.30 in Wednesday’s early Asian session.
The ongoing Russia-Ukraine conflict led to worries over supply-side disruptions among oil traders, supporting the WTI price.
Heightened US tariffs on Indian goods raise concerns about weaker demand, which might cap the WTI’s upside.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $65.30 during the early Asian trading hours on Wednesday. The WTI edges higher as concerns over supply disruptions increased following strikes on Russian energy sites by Ukraine in the ongoing Russia-Ukraine war.
Ukrainian President Volodymyr Zelenskyy said that the country intends to strike deep into Russia following a large Russian drone attack that left 60,000 Ukrainians without electricity. According to Reuters calculations, Ukrainian drone attacks have shut down facilities accounting for at least 17% of Russia's oil-processing capacity, or 1.1 million barrels per day. Concerns that intensifying airstrikes in Russia and Ukraine could lead to supply disruptions might boost the WTI price.
US President Donald Trump threatened to impose additional sanctions on Russia if no progress is made in peace talks with Ukraine. Trump further stated that he would intervene as a third party if necessary.
On the other hand, Trump’s doubling of the existing 25% duty on Indian exports raises fears of slowing trade and weaker global demand, which could weigh on the WTI price. The Trump administration imposed the additional tariff to penalize India for buying discounted Russian oil, arguing it indirectly funds Russia's war in Ukraine.
Oil traders will keep an eye on the release of the American Petroleum Institute (API) weekly crude oil stock, which will be published later on Wednesday. The attention will shift to the US Nonfarm Payrolls (NFP) report for August later on Friday. In case of the stronger-than-expected outcome, this could lift the US Dollar (USD) and drag the USD-denominated commodity price lower.
Read more
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
