DTN Oil Update
WTI Trades at $80 Amid Escalating Middle East Conflict
HOUSTON (DTN) -- Oil futures were mixed on Wednesday amid high volatility as traders adopted a wait-and-see approach towards the evolving Middle East conflict, overlooking weekly U.S. government data showing a decline in crude oil inventories.
NYMEX WTI for August delivery rose $0.92 to $80.26 bbl, while ICE Brent for September delivery climbed $0.863 to $85.59 bbl.
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Front-month RBOB futures increased $0.0856 to $3.3129 gallon. In the opposite direction, NYMEX ULSD futures for August delivery dropped $0.0333 to $3.9810 gallon.
The U.S Dollar Index edged down by 0.396 points to 100.315 against a basket of foreign currencies.
Tanker traffic through the Strait of Hormuz has slowed over the past week as Iranian attacks on tankers and the collapse of the ceasefire disrupted shipping. At the same time, a renewed U.S. blockade threatened to further tighten global oil supplies. Iran's crude oil exports had recovered to about 1.5 million bpd to 2 million bpd after the U.S. eased its embargo and suspended sanctions.
Escalating geopolitical risks after recent attacks near the Strait of Hormuz overshadowed weekly federal data showing a draw in crude oil inventory.
The U.S. Energy Information Administration reported Wednesday that commercial crude oil inventories fell by 1.7 million bbl to 409.7 million bbl during the profiled week, the lowest inventory level since the week ended June 26, when stocks stood at 408.4 million bbl. Inventories remained 16.2 million bbl, or 3.8%, below the same week last year.
Total motor gasoline inventories fell by 1.6 million bbl to 210.5 million bbl during the week profiled, the lowest level since the week ended Nov. 21, 2025, when stocks were at 209.9 million bbl. Year-on-year, inventories were down 8%. In contrast, distillate fuel weekly stockpiles rose by 4.6 million
bbl to 108.2 million bbl. This was 4.4% above the same week last year. Jet fuel inventories increased by 800,000 bbl to 48.4 million bbl last week and were 7.8% above the same week last year.