Key facts
- WTI crude oil futures rallied for a second consecutive session.
- The July WTI contract reached a high of $94.00 and closed up 1.56%.
- U.S. crude exports reached a record 5.6 million barrels per day in May.
- Increased demand from Asian and European refiners drove the export surge.
- Extended U.S.-Iran negotiations are contributing to physical market tightening.
WTI Crude Oil futures experienced a rally for the second consecutive session, recovering from the 50-day moving average to reach a high of $94.00 for the July contract, ultimately closing up 1.56% despite an earlier low of $90.12. Physical oil markets are showing signs of tightening, partly due to the ongoing U.S.-Iran negotiations, which have extended to five days without an agreement to reopen the strait. While current supplies are considered manageable, expectations of high demand in July and August are projected to lead to accelerated inventory drawdowns. To compensate for potential supply gaps, U.S. crude exports surged to a record 5.6 million barrels per day in May. This increase was fueled by demand from Asian and European refiners looking for alternatives to supplies from the Persian Gulf. The significant rise in exports has led to increased tanker traffic along the Gulf Coast, particularly at the Port of Corpus Christi.