WTI Crude Rallies as US Shipping Advisories Restore Risk Premium

Geopolitical Tension

The potential for tanker seizures or boardings is currently outweighing the bearish 2026 surplus narrative. Traders are hedging against a disruption to the 20 million barrels per day that transit the Strait of Hormuz.

Inventory Tightness

A larger-than-expected drawdown in US commercial crude stocks reported earlier this week has tightened the prompt physical market, providing a technical floor for WTI near the $65 level.