West Texas Intermediate (WTI), the US crude oil benchmark, traded around $93.50 during early Asian hours on Friday, marking a decline in price as US and Israeli leaders sought to calm concerns over the ongoing Middle East conflict and its impact on energy facilities [1]. US President Donald Trump stated, 'not putting troops anywhere,' in response to questions about deploying US ground forces, while Israeli Prime Minister Benjamin Netanyahu announced Israel would refrain from further attacks on Iranian energy facilities [1]. These statements followed the largest day of strikes on energy assets since the war began on February 18, including extensive damage to Qatar's liquefied natural gas plant, which is expected to take years to repair [1].
Additionally, a significant increase in US crude oil inventories contributed to downward pressure on WTI prices. The US Energy Information Administration (EIA) reported that crude oil stockpiles for the week ending March 13 rose by 6.156 million barrels, compared to a previous week's increase of 3.824 million barrels and a market consensus of only a 400,000-barrel rise [1]. This larger-than-expected inventory build suggests weaker demand or increased supply, further weighing on oil prices.
Market participants are closely monitoring geopolitical developments for signs of escalation or resolution. Iranian officials indicated that their response to Israel's assault on South Pars 'is underway and not yet complete,' suggesting ongoing tensions that could affect supply and potentially boost WTI prices if the situation worsens [1]. Any signs of further escalation in the Middle East could raise fears of supply disruption and drive oil prices higher in the near term [1].
CONCLUSION
WTI oil prices have declined to $93.50 amid reassurances from US and Israeli leaders and a significant rise in US crude inventories. While current sentiment is cautious, ongoing geopolitical tensions in the Middle East remain a key risk factor for future price movements. Traders are expected to closely follow developments for any signs of escalation that could impact supply and market sentiment.