Brent crude recently traded at $87.12 per barrel, while West Texas Intermediate held at $81.36. Markets remain resilient despite a significant build in U.S. commercial crude inventories, which rose by more than 17.4 million barrels last week. Analysts at ING suggest this surplus would typically suppress prices, but the ongoing uncertainty regarding supply availability in the war-torn region continues to provide a price floor.
Oil Prices Climb Toward 4% Weekly Gain Amid Strait of Hormuz Standoff
Persistent geopolitical deadlock between Washington and Tehran is keeping global energy markets on edge, putting Brent and West Texas Intermediate on track for a 4% weekly increase. The rise follows a sustained reduction in tanker traffic through the Strait of Hormuz and U.S. signals of an indefinite naval blockade.
Susan Bell, senior vice president for oil at Rystad Energy, noted that the broader geopolitical backdrop currently outweighs bearish stock data. This volatility persists even as major institutions revise their outlooks. The International Energy Agency anticipates a supply shortage of 1.8 million barrels daily this quarter, outpacing its own demand decline forecast of 1.6 million barrels. Simultaneously, OPEC lowered its 2026 demand growth projection to 580,000 barrels per day, down from the 780,000 barrels anticipated in July.
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