Key Moments
- WTI traded near $88.95 in early European hours on Thursday, backing off its intraday high as traders locked in profits.
- Fresh US military strikes in Iran and reported interceptions of Iranian missiles and drones have intensified concerns over potential supply disruptions.
- US crude inventories fell by 7.228 million barrels for the week ending June 5, outpacing market expectations for a 4.0 million barrel draw.
WTI Retreats Despite Heightened Geopolitical Risk
West Texas Intermediate (WTI), the US crude oil benchmark, was quoted around $88.95 during early European trading on Thursday, extending a pullback from the session high as market participants took profits. The latest move comes even as renewed tensions between the United States and Iran inject additional risk into the energy complex, potentially limiting further downside for prices.
The pressure on WTI emerged as traders reassessed the balance between profit-taking and escalating geopolitical risk. While the price slipped back below $89.00, the backdrop of rising tension in the Middle East remained a key focus for energy markets.
US Strikes and Regional Interceptions Raise Supply Concerns
The United States launched a new series of military strikes in Iran, an action that has raised fears of prolonged disruption to energy flows. Market participants are watching closely for any signs that the conflict could further impact oil supply routes or regional production.
The US Central Command (CENTCOM) stated that American forces had begun “launching additional self-defense strikes against multiple targets in Iran at the commander in chief’s direction.” CENTCOM added that the strikes were carried out “in response to Iran’s unwarranted and continued aggression.”
In a further sign of regional involvement, Bahrain, Jordan and Kuwait reportedly intercepted Iranian missiles and drones aimed at US military facilities, according to Reuters. This broader engagement has reinforced market anxiety over the stability of supply from the region, even as WTI prices pulled back in the latest session.
US Crude Inventories Log Another Sharp Draw
Fundamentals also remained supportive, with US crude stockpiles posting another significant weekly decline. Data from the US Energy Information Administration (EIA) showed that crude inventories for the week ending June 5 decreased by 7.228 million barrels. This followed a prior weekly draw of 7.974 million barrels and exceeded the market consensus, which had anticipated a 4.0 million barrel reduction.
| US Crude Inventory Data | Change (million barrels) |
|---|---|
| Week ending June 5 | -7.228 |
| Previous week | -7.974 |
| Market consensus | -4.0 |
The stronger-than-expected drawdown highlighted tightness in US crude balances, a factor that could underpin prices even as short-term technical and positioning dynamics trigger bouts of profit-taking.
The publisher noted that (This story was corrected on June 11 at 06:00 GMT to rewrite, in the headline and article, that WTI tumbles below $89.00 despite renewed US-Iran tensions, not go up.)
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