West Texas Intermediate (WTI) oil prices stabilized above $91.00 per barrel on Friday, following a reversal from Thursday’s highs near $96.00, as geopolitical tensions in the Middle East continue to support crude prices despite increased supply from key producers [1]. Saudi Arabia has significantly boosted its oil exports through the Strait of Hormuz, reaching a wartime peak of more than 5 million barrels per day in September, up from 3.4 million barrels in August and 4.5 million in July, according to a Bloomberg report [1]. Additionally, Iraq, Kuwait, and the United Arab Emirates have increased their oil shipments out of the Gulf, often using vessels with their transponders off, further easing concerns about supply disruptions [1].
Meanwhile, diplomatic efforts are ongoing, with Tehran reportedly offering a new seven-day ceasefire proposal that includes implementing a Memorandum of Understanding signed in June and reopening the Strait of Hormuz, according to the Financial Times [1]. However, uncertainty remains high due to continued missile attacks by Iran-backed Houthis from Yemen, which Saudi authorities recently intercepted. Fears persist that further attacks could damage Saudi oilfields, potentially keeping crude prices elevated [1].
On the supply side, US commercial oil stockpiles increased by 2.96 million barrels in the week ending September 19, contrary to market expectations of a 700,000-barrel withdrawal and following a 640,000-barrel decline the previous week. This unexpected inventory build has helped cap the oil rally seen earlier in the week [1].
Overall, while increased exports and inventory builds have eased some supply concerns, ongoing geopolitical risks and the threat of disruptions in the Middle East continue to exert upward pressure on WTI oil prices [1].
CONCLUSION
WTI oil prices remain supported above $91.00 per barrel as increased Saudi exports and higher US inventories are offset by persistent Middle East tensions and the threat of supply disruptions. The market is closely watching diplomatic developments and ongoing security risks, which are likely to keep volatility elevated in the near term.