Oil Bulls Take Control as Iran Deal Collapses and Hormuz Stays Restricted
October WTI crude oil futures are trading at $86.31 late Thursday, up $4.82 or 5.91% for the week. The contract opened at $81.62, traded as low as $80.80, and reached $87.69. Friday’s session is still ahead, so the weekly result is not final. The market has already made its decision about the week. WTI rallied because the agreement traders were waiting for never appeared. The Strait of Hormuz is…
Oil prices surged this week as the Iran deal failed to materialize and the Strait of Hormuz remained restricted. WTI crude oil futures climbed to $86.31, up 5.91% for the week. The temporary ceasefire expired, and the UAE suspended economic ties with Iran. Despite some Gulf producers moving crude through alternative routes, the overall supply was below normal.
U.S. crude inventories rose, but distillate inventories fell, keeping the market tight. WTI gained over $2 on the worsening diplomatic situation, but the market remained cautious due to unclear supply figures. The bulls argued that the path was clear for higher prices, while bears pointed to alternate routes and U.S. crude inventories as reasons for caution.
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