WTI remains below $80.50 as traders monitor diplomatic efforts to reopen Hormuz

• WTI drops as investors monitor diplomatic efforts to reopen the Strait of Hormuz amid persistent threats.

• Oil moves through the Gulf via dark tankers and expanding US escort operations.

• Both the IEA and OPEC lowered global oil demand outlooks due to ongoing conflicts and high prices.

West Texas Intermediate (WTI) oil price remains subdued for the third successive day, trading around $80.30 per barrel during the Asian hours on Friday. Crude oil prices edge lower as investors adopt a wait-and-see approach, closely monitoring diplomatic attempts to reopen the Strait of Hormuz.

Crude continues to flow out of the Persian Gulf despite the ongoing deadlock. Some tankers are actively sailing with their transponders switched off to mitigate risks, though vessels navigating the strait remain exposed to persistent threats. Meanwhile, the U.S. claims that up to 9 million barrels of oil per day are currently transiting the critical waterway, supported by the expanding capacity of U.S. forces to escort tankers.

At the same time, demand concerns are adding downward pressure to the market. The International Energy Agency (IEA) recently trimmed its global oil demand outlook, warning that prolonged conflict and elevated prices are taking a toll on overall consumption. Compounding this sentiment, OPEC lowered its 2026 global oil demand growth forecast to 580,000 barrels per day—marking its fourth consecutive downward revision.

Oil momentum cools but TD Securities still sees scope for further upside

According to TD Securities, “easing near-term momentum has also catalyzed modest selling in WTI crude on the day,” as some length is pared back. However, the bank stresses that “fundamental tightness across crude and product markets should ultimately support further upside,” suggesting the recent pullback is more a function of short-term dynamics than a shift in the underlying bullish supply-demand backdrop.