WTI Oil struggles below $70 amid expectations of higher Middle East supply

Crude Oil prices edge lower on Friday, with the US benchmark West Texas Intermediate (WTI) barrel changing hands at $69.65 at the time of writing. This is the lowest price since February 27, one day before the US and Israel launched a joint attack on Iran.

WTI prices have extended their sell-off this week, posting more than a 30% decline since late May, as a partial reopening of the key Strait of Hormuz and market expectations of increased supply from Middle Eastern countries are offsetting concerns about higher demand as the western holiday season starts.

The US Energy Secretary, Chris Wright, affirmed earlier this week that Crude Oil flows through the Strait of Hormuz have returned to pre-war levels, with about 20 million barrels crossing the key waterway on Wednesday.

Wright also added that Oil exports from Venezuela, which are administered by the US since the capture of former president Nicolas Maduro, have increased significantly and that they might double by the end of US President Donald Trump’s term, in 2029. This has contributed to pushing prices lower.

Regular crude Oil flows are likely to take weeks to return to normal after a nearly three-month-long closure of Hormuz. Investors, however, remain hopeful that the higher supplies from Gulf countries, together with additional supplies from Iran, after the US waived restrictions during the ceasefire, will contribute to a quick replenishment of the depleted global Oil reserves.