WTI Oil rebounds as supply tensions overshadow demand concerns
West Texas Intermediate (WTI) US Oil rebounds on Friday and trades around $80.80 at the time of writing, up 0.40% on the day. Oil prices recover some of their losses after two days of correction as investors remain concerned about energy supply disruptions in the Middle East.
WTI oil prices have surged to around $80.80 on Friday, marking a 0.40% increase for the day. This rebound comes as tensions persist in the Middle East, specifically surrounding the Strait of Hormuz, which accounts for around 27% of global energy supply. Despite a slight uptick in vessel traffic on Thursday, transit numbers remain significantly below pre-war levels, with concerns about potential supply disruptions looming over the market.
Meanwhile, both OPEC and the International Energy Agency (IEA) have revised their demand outlooks downward, citing the impact of ongoing conflicts and elevated prices on global consumption. OPEC reduced its forecast for global oil demand growth to 580,000 barrels per day, down from a previous estimate of 780,000 barrels per day.
The IEA also warned that prolonged conflicts and high prices are beginning to affect consumption patterns. As a result, WTI oil prices remain subject to both supply risks and concerns over demand, leading to a cautious outlook for the asset.
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