WTI Extends The Decline Below $64.50 On Reduced Middle East Supply Risk

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  • WTI price edges lower to around $64.45 in Thursday’s early Asian session.
  • Israel-Iran ceasefire reduces geopolitical supply concerns, weighing on the WTI price. 
  • US crude oil inventories declined by 5.836 million barrels in the week ended June 20, according to the EIA. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $64.45 during the Asian trading hours on Thursday. The WTI price extends downside after US President Donald Trump pushed Israel and Iran into a truce.

The ceasefire between Israel and Iran weighs on the black gold. Investors expect a truce between both countries will reduce the risk of oil supply disruptions in the Middle East, though the truce remains fragile.

“With the announcement of a ceasefire, President Trump called time on the twelve-day Israel-Iran war after successfully executing an escalate to de-escalate strategy,” said Helima Croft, head of global commodity strategy at RBC Capital Markets.

The downside for the WTI price might be capped as Crude Oil Inventories fell more than expected last week. The US Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the US for the week ending June 20 declined by 5.836 million barrels, compared to a fall of 11.473 million barrels in the previous week. The market consensus estimated that stocks would decrease by 600,000 barrels. 


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Disclaimer: This publication has been prepared by the Economic and Financial Analysis Division of ING Bank N.V. (“ING”) solely for information purposes without regard to any ...

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