Oil prices climb as shipping traffic through the Strait of Hormuz drops sharply amid US-Iran tensions over control of the key chokepoint.
West Texas Intermediate futures on NYMEX gained 0.5% to $82.10 in European trading Thursday, driven by concerns over prolonged energy supply disruptions. The Strait of Hormuz, a critical route for one-fifth of global oil supply, saw traffic fall to just six vessels on August 10, down from a 10-day average of 11 and far below pre-war levels of 130-140 ships daily.
OPEC recently lowered its 2024 global oil demand forecast to 580,000 barrels per day from 780,000 bpd. Despite the revision, geopolitical risks remain elevated as both the US and Iran assert control over the strait, with US President Donald Trump claiming “total control” of the region.
Technically, WTI holds above its 20-day Exponential Moving Average at $80.07, with the Relative Strength Index at 52.55, signaling a slight bullish bias after recovering from July lows near $67.09.