WTI holds firm as Strait of Hormuz concerns outweigh sharp US inventory build

West Texas Intermediate (WTI) oil maintained its steady price on Wednesday as traders balanced a surge in U.S. crude inventories with ongoing concerns regarding Middle Eastern supply risks. At the time of publication, WTI was trading at approximately $82.20 per barrel, nearing a one-and-a-half week high. According to the U.S. Energy Information Administration (EIA), crude inventories expanded by 17.422 million barrels during the week that ended on August 7, significantly higher than the previous week's 2.479 million barrel increase.

Initial expectations were for a decrease in stocks by 1.4 million barrels, the largest weekly rise since January 2023. However, traders largely dismissed the substantial inventory build due to ongoing focus on the Strait of Hormuz. U.S. President Donald Trump asserted that Washington held "total control" over the waterway, expressing confidence in its maintenance.

Trump's remarks followed the disabling of a Panama-flagged cargo ship by U.S. forces after it breached the naval blockade. The persistent closure of the Strait of Hormuz led the International Energy Agency (IEA) to lower its global oil supply and demand outlook for 2026, forecasting a decrease of 4.3 million barrels per day (bpd) to around 102 million bpd.

The IEA expected a 510,000 bpd greater contraction in global oil demand compared to the previous report. Separately, the EIA raised its forecast for the average WTI price in 2026 to $80.88 per barrel, up from the previous estimate of $76.26. WTI oil is a high-quality crude oil traded on international markets, known for its low gravity and sulfur content.

It is sourced in the U.S. and distributed via the Cushing hub, considered "The Pipeline Crossroads of the World." WTI is a benchmark for the oil market, and its price is frequently quoted in the media. Supply and demand, political instability, global growth, OPEC decisions, and the US Dollar's value are key factors influencing WTI oil prices.