Key Moments
- WTI trades around $89.50 per barrel in Asian hours after prior-session losses, holding steady despite recent volatility.
- US naval forces escorted roughly 18 million barrels of oil through the Strait of Hormuz, helping calm immediate supply concerns.
- Average US diesel prices reached a record $5.820 per gallon amid refinery disruptions and a tightening global product market.
WTI Holds Near $89.50 After US Naval Escort Operation
West Texas Intermediate (WTI) crude prices show limited movement during Asian trading on Friday, hovering around $89.50 per barrel after declining in the previous session. The market is digesting reports that US military forces escorted 40 commercial vessels carrying approximately 18 million barrels of oil through the Strait of Hormuz on Tuesday.
According to CNN, which cited two US officials, US forces intercepted a cruise missile and repelled several drone attacks during what was described as a record wartime transit. If confirmed, this operation has helped reassure traders about the security of a critical energy shipping route, exerting modest downward pressure on global crude benchmarks.
Geopolitics Cap Downside Despite Improved Route Security
While the successful escort mission has eased immediate fears over physical supply disruptions, broader geopolitical tensions continue to limit any substantial pullback in oil prices. Recent US strikes on Iran, together with renewed Israeli threats toward Tehran, have revived concerns about potential regional supply shocks.
These risks are being partially offset by recent comments from Russian President Vladimir Putin signaling a willingness to engage in peace negotiations, which have provided some relief to market sentiment. Even so, the balance between heightened geopolitical risk and reassurances on shipping security is keeping WTI confined within a relatively tight range.
US Diesel Prices Surge to Record as Product Markets Tighten
Product markets are showing even sharper stress than crude. Average US diesel prices climbed to a record level on Thursday as a global supply squeeze intensified. Ongoing hostilities between the US and Iran, combined with disruptions attributed to Ukrainian strikes on major Russian diesel-exporting refineries, have contributed to a tightening diesel market.
Reuters, citing GasBuddy, reported that the US national average diesel price rose to $5.820 per gallon. The spike underscores the sensitivity of refined product markets to both geopolitical developments and refinery outages.
| Market Indicator | Latest Level / Detail | Context |
|---|---|---|
| WTI crude price | Around $89.50 per barrel | Asian trading on Friday after prior-day losses |
| Volume escorted through Strait of Hormuz | 18 million barrels | 40 commercial vessels escorted by US forces on Tuesday |
| Average US diesel price | $5.820 per gallon | Record high reported on Thursday |
Canada’s Trade Profile: Energy Surplus vs Non-Energy Deficit
Economists at National Bank Financial flag a notable shift in Canada’s external trade dynamics. They observe that “Canada’s energy surplus with the world shrank from C$15.0 billion to C$14.5 billion, while the non-energy deficit expanded from C$10.8 billion to C$13.7 billion.”
They emphasize that this combination of a reduced energy surplus and a deeper non-energy deficit highlights an increasing dependence on energy exports to offset underlying softness in other areas of the trade balance.
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