• WTI trades with minor losses below the $100 mark as investors monitor stalled US-Iran negotiations and developments around the Strait of Hormuz.
• OPEC flags tighter Oil supplies after OPEC+ output fell by 1.74 million bpd in April amid Middle East disruptions.
• US crude inventories posted a larger-than-expected draw, while rising US inflation highlighted the impact of higher energy prices.

West Texas Intermediate (WTI) crude Oil fluctuates with minor losses on Wednesday, though prices remain supported by fears that disruptions through the Strait of Hormuz may persist longer than expected as US-Iran negotiations remain at an impasse. At the time of writing, WTI is trading around $97.80 per barrel, down nearly 0.85% on the day.

The subdued price action reflects cautious sentiment as traders await further developments in the US-Iran peace talks, particularly over the reopening of the Strait of Hormuz. Although tensions in the waterway remain elevated, the absence of major new developments is keeping WTI capped below the $100 mark for now.

OPEC’s latest Monthly Oil Market Report pointed to tighter Oil supplies due to supply disruptions in the Middle East. The organization said OPEC+ crude output averaged 33.19 million barrels per day (bpd) in April 2026, down 1.74 million bpd from March, as the Iran war prompted several Middle Eastern producers to cut output.

On the demand side, OPEC said global oil demand is expected to grow by 1.2 million bpd in 2026, while 2027 demand growth was revised higher to 1.5 million bpd from the previous estimate of 1.3 million bpd.

The ongoing energy shock continues to fuel price pressures globally, with the latest US data showing the Consumer Price Index (CPI) accelerating to 3.8% YoY in April from 3.3% in March, marking the highest reading since May 2023. Producer Price Index (PPI) rose 6.0% YoY from 4.3% previously, above market expectations of 4.9%.

Meanwhile, the latest data from the US Energy Information Administration (EIA) revealed US crude oil inventories fell by 4.306 million barrels in the week ending May 8, well above market expectations for a 2.1 million-barrel draw and following a 2.314 million-barrel decline in the previous week.