WTI NY Extends to ~$93.85, Highest in Three Months as Middle East Escalation Threatens Supply

West Texas Intermediate extended its advance into the New York session on Wednesday, printing a fresh three-month high as Middle East escalation kept a geopolitical premium in crude.

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WTI trades around $93.85 at the time of writing, up 1.77% on the day — its highest level in three months.

Drivers

Tuesday’s US–Iran attack exchange, Iran-backed Houthi strikes on Saudi oil facilities, and Saudi retaliatory strikes in Yemen sit on the same Gulf tape. Attacks on vessels continue to restrict oil traffic through the Strait of Hormuz, which handled around 20% of global oil supply before the conflict began.

TD Securities

TD Securities: crude continues to rally with “seemingly no end to conflict in sight,” as “another round of escalation and an apparent preference for limited attacks and economic squeeze as opposed to deal-making leaves the energy market on a continued tightening trajectory.” The firm warns further tightness could materialize “amid these renewed attacks and as signs grow that China is becoming more active in the market,” arguing Chinese refining capacity would need to be tapped to alleviate product-market pressure but would “effectively shift a portion of the extreme product tightness to the crude market.” In their view, “the path of least resistance remains to the upside for crude oil even as prices reach triple digits again.”

Prior oil tape

Follows WTI EU ~$92.70 and Brent clears $100.

Also see: WTI Falls Below $93.50 to ~$93.20 on Profit-Taking; US–Iran Tensions Cap Downside.

Also see: WTI Rebounds Toward $97 as US–Iran Conflict Escalates.

Also see: EIA Crude Inventories Draw 0.4M vs Forecast 1.4M Draw.

Informational only. Not trading advice, signals, or a guarantee of any market outcome.