WTI gains ground above $67.00 amid renewed Red Sea attacks-FX Street

WTI gains ground above $67.00 amid renewed Red Sea attacks-FX Street

The West Texas Intermediate (WTI) crude oil price has edged higher, reaching around $67.15 during the early Asian trading hours on Wednesday, July 2, 2025, according to FX Street. This upward movement is largely attributed to renewed Houthi attacks on shipping in the Red Sea, which has caused disruptions in the oil and energy supply and transportation systems [2].

The Middle East conflict between Israel and Iran, which had led to a truce, has seen a resurgence of attacks, causing significant disruptions in the oil supply chain. On Tuesday, Reuters reported that four seafarers on the Liberian-flagged, Greek-operated bulk carrier Eternity C were killed in a drone and speedboat attack off Yemen, marking the second incident in a day after months of calm. The escalation in the Red Sea could boost the WTI price, as it is a key route for transporting crude oil from the Middle East to Europe and Asia [2].

Adding to the market's uncertainty, the American Petroleum Institute (API) reported that crude oil stockpiles in the US unexpectedly rose by 7.1 million barrels last week. This increase was much higher than the market consensus estimate of a 2.8 million barrel decrease, and it may cap the upside for the black gold [2].

The U.S. Energy Information Administration (EIA) is expected to release its Crude Oil stockpiles report later on Wednesday, which could provide further insights into the market's supply dynamics. The EIA's latest Short-Term Energy Outlook (STEO) indicates that global oil supply and prices are expected to continue pushing oil prices down in 2026, with the Brent price averaging $58 per barrel [1]. However, the current geopolitical tensions and supply disruptions may lead to short-term price volatility.

In conclusion, the WTI price has gained ground above $67.00 due to renewed Red Sea attacks and unexpected increases in US crude oil inventories. Market participants will be closely monitoring the EIA report for further clarification on the market's supply dynamics.

References:
[1] https://www.ajot.com/news/eia-revises-crude-oil-price-forecast-amid-uncertainty-and-volatility-but-still-expects-prices-will-decrease
[2] https://www.fxstreet.com/news/wti-gains-ground-above-6700-amid-renewed-red-sea-attacks-202507090026