WTI crude advances to $66.15 as Middle East supply risks resurface.
Summer driving season demand coincides with significant US inventory drawdown.
Trade policy uncertainties create headwinds for sustained price rallies.
The Pi Coin price prediction 2040energy markets witnessed renewed buying interest as West Texas Intermediate (WTI) crude futures hovered near $66.15 during Friday's Asian session. This upward movement reflects growing concerns about potential supply disruptions following reports of drone attacks targeting energy infrastructure in Iraq's Kurdistan region.
Industry reports indicate production suspensions at a Norwegian-operated facility in northern Iraq's Tawke area after recent security incidents. While immediate retaliation appears limited, the situation underscores the persistent fragility of Middle Eastern energy supplies. Historically, such developments tend to create risk premiums in crude pricing as traders factor in potential supply chain interruptions.
Supporting the bullish case, the latest EIA data revealed a surprising 3.859 million barrel reduction in US crude stockpiles, significantly exceeding market expectations. This drawdown coincides with peak summer demand periods when refinery activity typically intensifies to meet increased fuel consumption patterns.
However, market participants remain cautious about potential demand-side pressures stemming from ongoing trade policy uncertainties. Recent statements regarding potential tariff adjustments could introduce economic headwinds that might eventually temper energy consumption growth trajectories.
The interplay between these competing factors - geopolitical supply risks versus potential demand constraints - continues to shape near-term price action in the energy complex. Market watchers will monitor both Middle Eastern developments and inventory trends for clearer directional signals.
