WTI Crude Falls to Four-Month Low Below US$69.50 as Markets Monitor Hormuz Shipping

West Texas Intermediate (WTI) crude traded near a four-month low around US$69.40 during Wednesday's European session as market participants monitored increased vessel traffic through the Strait of Hormuz alongside ongoing geopolitical developments in the Middle East.

According to tanker-tracking firm Kpler, about 24 commodity vessels, including crude oil tankers, LNG carriers and bulk ships, transited the Strait of Hormuz in both directions on Monday, with vessel movements continuing into Tuesday. According to the U.S. Energy Information Administration (EIA), the Strait of Hormuz handles more than one-quarter of global seaborne oil trade and about one-fifth of global petroleum consumption, making it one of the world's most important energy shipping routes.

Diplomatic developments also remained in focus. US envoys Jared Kushner and Steve Witkoff arrived in Doha on Tuesday for discussions with Qatar's prime minister regarding broader US-Iran negotiations, according to a Qatari government spokesperson. No direct meeting between US and Iranian officials has been announced, and market participants continue to monitor developments in the diplomatic process.

Supply data also attracted attention. The American Petroleum Institute (API) reported that US crude oil inventories declined by 6.072 million barrels during the week ended June 27, exceeding both the previous week's draw of 765,000 barrels and market expectations for a decline of about 4.1 million barrels. Despite the larger-than-expected inventory draw, crude prices remained under pressure as investors continued to assess geopolitical developments.

Market participants now await the official weekly inventory report from the US Energy Information Administration (EIA), which may provide additional insight into US supply conditions alongside broader geopolitical and market developments.