WTI rises above $98.50 amid Middle East supply fears
West Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $98.60 per barrel during the Asian hours on Tuesday. Crude oil prices appreciate as traders continue to navigate heightened uncertainty over global supply.
WTI oil price surges past $98.50 on Tuesday, driven by Middle East supply concerns. Traders grapple with the possibility that Saudi Arabia's East-West pipeline, an alternative to the Strait of Hormuz, remains closed after drone attacks. Iran and Gulf Arab nations postpone a meeting to address the situation, with Iran alleging that a supertanker was destroyed by mines.
Ukrainian President Volodymyr Zelenskyy suggests halting attacks on Russian energy targets if Russia reciprocates, conflicting with Trump's claims. Commodity trading advisors are heavily invested in energy, with trend-following traders heavily long on crude oil, diesel, and gasoline, awaiting volatility to decrease. WTI Oil, a high-quality light and sweet crude sourced in the US, is a key benchmark influenced by supply, demand, OPEC decisions, the dollar's value, and weekly inventory reports.
OPEC's production quotas, when reduced or increased, can significantly impact WTI prices. Despite a drop in US bond yields and a potential Fed rate increase, oil-driven inflation risks and geopolitical tensions support the US Dollar and weigh on currencies like the Australian Dollar and Japanese Yen. Bitcoin continues its upward trend above $79,000, while gold remains near a one-month low.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
