WTI Crude Oil futures rise as Gulf tensions support prices.
WTI Crude Oil futures reversed early weakness to finish higher for a fourth consecutive session, gaining 8.5% from their early October lows. The rally came despite a bearish monthly report from OPEC, which highlighted a projected contraction in Chinese demand and a substantial 2 million barrel-per-day increase in September Saudi output. However, geopolitical supply risks provided a strong floor for prices, as analysts point to ongoing Houthi strikes on Saudi Arabia and tanker incidents near the Strait of Hormuz. These tensions are driving up shipping and insurance costs, threatening to disrupt the recent recovery in Middle East exports and keeping a bid under the energy complex.
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5% from their early October lows. The rally came despite a bearish monthly report from OPEC, which highlighted a projected contraction in Chinese demand and a substantial 2 million barrel-per-day increase in September Saudi output. However, geopolitical supply risks provided a strong floor for prices, as analysts point to ongoing Houthi strikes on Saudi Arabia and tanker incidents near the Strait of Hormuz. These tensions are driving up shipping and insurance costs, threatening to disrupt the recent recovery in Middle East exports and keeping a bid under the energy complex.