Geopolitical risks in the Strait of Hormuz and a smaller-than-expected US crude inventory draw lift WTI above $78.70.
West Texas Intermediate crude trades near $78.70, up nearly 10% this week, as Middle East tensions sustain supply concerns. The latest US strikes against Iran target its ability to disrupt shipping in the Strait of Hormuz, a key chokepoint for global oil flows.
US crude inventories fell by 1.693 million barrels last week, missing forecasts of a 2.6 million-barrel decline. The draw follows an 11-week high build of 2.998 million barrels, reversing a prior streak of declines. Technical indicators show WTI above its 200-day SMA at $73.67 but below resistance at $83.80 and $87.33.
Ongoing geopolitical risks keep a premium embedded in oil prices, though traders remain cautious amid mixed inventory data and technical resistance levels.