Why is the price of WTI down today?

[dan_s]

Trading Economics:
"WTI crude futures extended its early decline to trade 1.5% lower at the $84.5 per barrel mark on Monday, as the temporary waning of geopolitical tension in the Middle East lowered the risk premium on energy commodities. The Israeli defense warded off a series of areal strikes from Iran during the weekend and minimized the attack’s damages, raising expectations that Israeli officials would heed to allies’ urge to refrain from any retaliation. Consequently, concerns about a shock to global oil waned as trade through the Strait of Hormuz remained unaffected, erasing the substantial increase in oil prices from hours before the missile launches on Friday. On the demand side, more economic releases pointing to a resilient US economy added to expectations that the Federal Reserve will hold rates higher for longer, pressuring the outlook of energy-sensitive industries and lifting the US dollar used to price oil contracts."

My Q2 forecasts are based on WTI averaging $82.50/bbl in the current quarter, then averaging $85.00/bbl in 2H 2024. Demand for oil-based transportation fuels remains high, exceeding supply in most regions.

A lot of jet fuel was burned up on Saturday night in the Middle East.