WTI trades with positive bias below mid-$79.00s on Iran uncertainty, supply concerns

West Texas Intermediate (WTI) crude oil prices experienced a slight upward trend during the Asian session on Tuesday, trading in the mid-$79.00s range. This upward movement was tempered by concerns surrounding the ongoing conflict in the Middle East, particularly the uncertainty over potential negotiations between Iran and the United States.

Iran, however, firmly stated that there were no ongoing talks with the US, contradicting President Donald Trump's claims of resuming negotiations as a reason for halting attacks over the weekend. The situation was further complicated by unconfirmed reports of drone strikes on US assets in Kuwait, which raised the possibility of a US-Iran peace deal.

Despite these risks, senior military adviser Mohsen Rezaee from Iran warned that the country would not permit any shipping route through the strategic waterway other than the one designated by the Islamic Republic. He also expressed concerns regarding potential risks and casualties for US vessels and forces if the standoff persisted.

Additionally, Houthi rebels allied with Iran imposed a naval blockade against Saudi Arabia, further exacerbating concerns about global energy supplies. Analysts from Rabobank, Benjamin Picton, described this recurring tension around the Strait of Hormuz as a "Groundhog Day" for markets, warning of potential strikes, a rally in oil prices, a sell-off in equities, and a rise in bond yields.

The OPEC+ decision to raise production from September and the lack of strong follow-through buying contributed to the cautious sentiment surrounding crude oil prices. Despite this, WTI Oil, a high-quality crude oil sourced in the United States, remains a benchmark for the oil market and its price is frequently quoted in the media.

The value of the US Dollar, global growth, OPEC decisions, and changes in inventory levels are some of the key drivers of WTI Oil prices.