WTI rises to near $92.50 despite Middle East diplomacy, resuming flows

WTI oil prices rebounded to near $92.50 per barrel despite efforts to de-escalate tensions in the Middle East. The resumption of crude oil flows eased some of the recent downward pressure. Saudi Arabia continued shipping crude through the Strait of Hormuz at a rate of 2.9 million barrels per day over the past week. The Straits of Hormuz is a narrow waterway between the Arabian Peninsula and the Iranian coast, and control of the straits is crucial for global oil shipping.

Furthermore, satellite imagery revealed a significant increase in supertankers at Saudi Arabia’s Gulf export terminals, with a combined capacity of 14 million barrels - the highest count since at least June. This surge in tanker activity suggests that supply remains robust despite the diplomatic challenges. However, the situation remains tense as Yemen's Iran-backed Houthi rebels reportedly attacked Riyadh and a Saudi Aramco facility in Yanbu.

Additionally, the US Treasury Secretary issued warnings that Iranian airlines may face international travel restrictions starting September 23 if they continue servicing Iranian carriers. These ongoing tensions could potentially impact oil supply and prices.