Oil News: Crude Oil Futures Sink as Hormuz Premium Vanishes
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Key Points:
- Crude oil futures plunged over 6% as traders stripped out the Hormuz risk premium.
- Five straight weekly inventory draws point to tightening crude oil supplies.
- Bullish crude inventory data failed to stop aggressive liquidation pressure.
Hormuz Easing Crushes July WTI
July WTI crude oil cratered $6.08 to $98.07 by 18:12 GMT Wednesday after the contract hit $104.45 near the open and reversed all the way down to $96.94 before mid-session. July Brent crude oil took the same ride, down $6.06 to $104.90 after printing $111.46 earlier in the day. The 7.9 million barrel draw from the Energy Information Administration meant nothing. The Strait of Hormuz headlines softened and traders stripped the geopolitical premium out of crude in a single session.