WTI fell for a second day on Thursday, trading just below $97 after touching four-month highs above $102 earlier in the week and moving towards the lower end of its weekly range near $96. Reports that Saudi Arabia has identified an alternative export route through Oman to serve Asian buyers eased fears of disruptions following attacks on the East-West pipeline, which carries crude to the Red Sea port of Yanbu as a route that bypasses the blocked Strait of Hormuz. Saudi authorities said on Wednesday they aim to restore the line to 40% capacity within days and expect it to be fully operational within six weeks.
US Inventory Data and Market Dynamics
In the US, inventory data also pointed to less tightening than markets had pencilled in. The EIA reported crude stocks fell by 640K barrels last week, compared with an expected 1.6 million decline, while gasoline and distillate inventories rose week on week. Separately, background uncertainty around US-Iran tensions has helped keep prices from sliding further below the $100 area. WTI remains the US benchmark crude, traded in dollars and typically characterised as light and sweet, while balances are influenced by supply-demand dynamics, weekly API and EIA reports, and OPEC quota decisions, including those under the OPEC+ framework of 12 members plus ten partners.
