Oil rises as supply concerns persist despite Middle East crude exports recovering to prewar levels
The benchmark contracts traded lower initially before rebounding as risks around regional shipping and the U.S.-Iran conflict continue to weigh.
West Texas Intermediate (WTI) futures on NYMEX rebounded strongly above $90 even as Middle East oil shipments reached pre-war levels. The oil price regained momentum and traded near $91.00 in European trade. Despite the Middle East region's energy flows returning to pre-war levels, supported by US military escorting shipments through the Strait of Hormuz, WTI recovered significantly.
Saudi Arabia's East-West pipeline also saw half of its flows restored, improving overall supply. According to Kpler data, crude oil shipments from the Middle East, including Persian Gulf and Red Sea, exceeded prewar levels, with Iran losing its dominance over the Hormuz passage. Meanwhile, WTI traded at $90.78, with the near-term outlook slightly bearish, as the price held just below the 20-day Exponential Moving Average at $91.41.
Technical analysis indicated a potential break above the 20-day EMA, which could open the path toward recent highs. On the downside, the former breakout area near $86.53 acted as a key support level. Overall, global supply and demand, OPEC decisions, US Dollar value, and OPEC+ meetings were key drivers of WTI Oil price.
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