West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $93.50 during the early Asian trading hours on Friday. The WTI price declines as the leaders of the US and Israel sought to reassure traders rattled by damage to major Persian Gulf energy facilities.
US President Donald Trump said that he’s “not putting troops anywhere” after being asked about the possibility of deploying US ground forces, while Israeli Prime Minister Benjamin Netanyahu stated that Israel would refrain from more attacks on Iranian energy facilities.
These remarks followed the biggest day of strikes on energy assets since the war began on February 18, including extensive damage to the world’s biggest liquefied natural gas plant in Qatar that will take years to repair.
A significant surge in US crude oil inventories could also weigh on black gold. According to the US Energy Information Administration (EIA) weekly report, crude oil stockpiles in the US for the week ending March 13 climbed by 6.156 million barrels, compared to a rise of 3.824 million barrels in the previous week. The market consensus was for a 400,000-barrel increase.
Traders will closely monitor geopolitical headlines for indications on how long the war will last. Iranian officials stated that the response to Israel’s assault on South Pars “is underway and not yet complete.” Any signs of escalating tensions in the Middle East could raise fear of supply disruption and boost the WTI price in the near term.
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