WTI hovers around $89.50 as US military escorts tankers through Hormuz earlier this week

West Texas Intermediate (WTI) oil price hovered around $89.50 per barrel amid stable trading on Friday. This price remained unchanged following reports that the US military escorted 40 commercial vessels carrying about 18 million barrels of oil through the Strait of Hormuz on Tuesday. A record-breaking defensive operation against missile and drone attacks helped stabilize market sentiment towards supply route security, exerting slight downward pressure on global crude prices.

However, the potential decline in oil prices was tempered by persistent geopolitical tensions and recent US strikes on Iran. Russian President Vladimir Putin's openness to peace negotiations offered some market relief. At the same time, US diesel prices reached a record high of $5.820 per gallon due to a global supply crunch and disruptions in Russian diesel exports.

Canada's energy surplus with the world contracted, while its non-energy deficit widened, highlighting the growing dependence on energy exports to counter broader trade weaknesses. WTI oil, traded internationally, is known for its low gravity and sulfur content, making it highly refined and easily processed. Its price, a benchmark in the oil market, is influenced by factors such as global growth, supply disruptions, OPEC decisions, exchange rates, and OPEC+ production quotas.

The US dollar's value impacts WTI crude oil prices as oil is traded predominantly in US dollars. Weekly API and EIA reports on oil inventories also influence WTI oil prices, with drops indicating increased demand and higher prices.