WTI remains below $97.50 as Saudi routes recover, US stocks shrink less than expected

West Texas Intermediate (WTI) oil price fell for a second day in a row, trading around $96.60 per barrel during Asian hours on Thursday. Reports emerged that Saudi Arabia intends to restore about half of the capacity of its East-West pipeline within days and achieve full operation within six weeks. The key pipeline, providing an alternative export route around the Strait of Hormuz, was damaged during drone attacks last week.

Saudi Arabia has intensified efforts to transport larger volumes of crude through Hormuz with U.S. military assistance. Supply concerns eased further as U.S. Energy Secretary Chris Wright reported that 18 million barrels of crude and petroleum products had successfully passed through the Strait of Hormuz earlier in the week. Additionally, the U.S. Energy Information Administration (EIA) noted a smaller-than-expected draw from domestic crude inventories the previous week, with crude oil stocks in the top-producing nation dropping by approximately 640,000 barrels, less than the anticipated 1.62 million barrels.

TD Securities emphasized that U.S. policy and military engagement in the region will be crucial for crude markets. A less aggressive or supportive military presence in the Middle East could sustain geopolitical risk premiums, as Iran might seek to consolidate control over the Strait, potentially causing persistent supply-side anxiety in oil markets.

WTI Oil is a type of Crude Oil sold on international markets, also known as "light" and "sweet" due to its low gravity and sulfur content, respectively. It is considered a high-quality oil that is easily refined, sourced in the United States, and distributed via the Cushing hub, known as "The Pipeline Crossroads of the World." WTI price is frequently quoted in the media, with supply and demand being the primary drivers of its value.

Global growth, political instability, wars, sanctions, OPEC decisions, and the U.S. Dollar's value also impact WTI Oil prices. Weekly Oil inventory reports from the American Petroleum Institute (API) and the Energy Information Agency (EIA) can influence WTI Oil prices, with drops in inventories indicating increased demand and higher prices, while higher inventories suggest increased supply and lower prices.