WTI hits two-week high Middle East tensions overshadow Russian diesel supplies
West Texas Intermediate (WTI) Oil reverses course on Monday and climbs to a two-week high as doubts over a Russia-Ukraine energy ceasefire and supply concerns in the Middle East keep a geopolitical premium in energy markets.
WTI oil prices reached a two-week high on Monday amid worries over a potential Russia-Ukraine ceasefire and tensions in the Middle East. WTI traded around $93.50, up 2.75% from the previous day, bouncing back from a low of $89.02. Initial optimism from US President Donald Trump's announcement of an "energy ceasefire" and Russia's diesel supply to the US and global markets was short-lived.
Ukrainian President Volodymyr Zelensky reported Russian strikes on six energy facilities in Ukraine, casting doubt on the ceasefire. Kremlin spokesman said, "Contacts are ongoing, we will inform you in due course." Middle East issues further bolstered crude prices after Houthi attacks on Riyadh's international airport and ongoing battles near Bab el-Mandeb, a crucial Red Sea shipping route.
Saudi Aramco CEO Amin Nasser warned of global crude oil shortages until Hormuz fully reopens. Iran's IRGC reported a naval mine strike on an oil tanker in the Strait of Hormuz, complicating matters further. OPEC Secretary General Haitham Al Ghais forecasted weaker global oil demand growth in 2026. WTI, a high-quality US crude oil, is a benchmark for the oil market.
The price of WTI, along with other oil prices, is influenced by supply and demand factors, geopolitical events, OPEC decisions, and the US Dollar's value.
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