WTI Rises as Supply Tightness Overshadows US Inventory Build

Lead: WTI crude oil prices held a high-level range on Friday, currently trading near $87.02, as market concerns over tight global energy supply continued to dominate sentiment, outweighing the bearish impact of rising US commercial crude inventories.

**Supply Risk Premium Remains Elevated**

Geopolitical tensions in the Middle East, particularly uncertainty over the safety of transit through the key shipping lane of the Strait of Hormuz, are the core factor underpinning oil prices. Market reports indicate that heightened regional tensions have amplified the risk of crude supply disruptions, prompting institutional participants to cover short positions and injecting a higher risk premium into prices. Expectations of potential logistical bottlenecks in physical shipments have led the market to recalibrate the price structure, introducing a higher structural price floor.

**Strong Demand vs. Inventory Data**

Despite weekly data from the US Energy Information Administration (EIA) showing an accumulation in commercial crude inventories, market focus has shifted to robust downstream demand. US refinery utilization rates are reportedly surging to near-full capacity, underscoring strong feedstock demand. Meanwhile, inventory levels at key nodes, including the Cushing, Oklahoma delivery hub, continue to contract, and distillate inventories have fallen sharply, indicating that the US physical market remains tight, thereby offsetting the negative impact of higher total crude inventories.

**Macro Environment Provides Support**

Macroeconomic factors are also lending additional support to oil prices. A softer US dollar and a pullback in long-term US Treasury yields have jointly enhanced the appeal of dollar-denominated commodities to investors. Overall, the current market structure reflects a dominant supply-side risk premium, coupled with high domestic refinery demand, keeping oil prices firm amid intersecting factors.