WTI set for monthly gain amid US-Iran stalemate
West Texas Intermediate (WTI) Oil rebounds on Wednesday and remains on track for a monthly gain of around 5.5%. The lack of progress in US-Iran negotiations to reopen the Strait of Hormuz keeps geopolitical risks elevated, even as Middle East supply conditions improve.
WTI crude oil prices are expected to rise over the next month, despite ongoing tensions between the United States and Iran. The geopolitical risk remains high as negotiations to reopen the Strait of Hormuz continue to be unproductive. However, Middle East supply conditions have improved, allowing WTI to recover from its recent decline.
Saudi Arabia has resumed tanker loadings at Yanbu and restarted its East-West pipeline, providing an alternative route around Hormuz. Additionally, the US has offered to release up to 40 million barrels from its Strategic Petroleum Reserve. Though crude inventories rose last week, this increase was less than anticipated, leaving room for WTI prices to continue gaining.
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