October WTI crude oil futures are trading at $86.31 late Thursday, up $4.82 or 5.91% for the week.
The contract opened at $81.62, traded as low as $80.80, and reached $87.69. Friday’s session is still ahead, so the weekly result is not final.
The market has already made its decision about the week. WTI rallied because the agreement traders were waiting for never appeared.
The Strait of Hormuz is still operating far below normal. The ceasefire is finished. No talks are scheduled. Washington and Tehran are moving farther apart, not closer together.
Hormuz Traffic Is Still the Problem
The Strait of Hormuz remains the whole trade. Before the war, about one-fifth of global oil and liquefied natural gas consumption moved through the waterway.
This week, shipping traffic remained in the single digits. Kpler data showed five commodity vessels passed through the strait Saturday and none were registered Sunday.
By Tuesday, traffic had fallen to six vessels from nine the prior day. Wednesday’s shipping report showed no improvement.
That is not a reopening. It is a restricted supply system that has not regained momentum. Refineries need cargoes they can schedule, insure and receive on time.
A diplomatic headline does not solve that problem. Saudi Aramco resumed some loadings from inside the strait and offered cargoes through transfers off Fujairah.
Chinese companies also began collecting crude outside the Gulf.
