Oil News: War Premium Evaporates but Inventory Damage Remains
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Key Points:
- Global oil inventories lost 1.4 billion barrels during the conflict, creating future supply risks.
- Crude oil futures plunged for a second day as the Strait of Hormuz reopening erased the war premium.
- WTI crude is testing the $80.24-$74.35 value zone, with traders watching for a technical bounce.
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The Strait of Hormuz is reopening Friday and crude is in freefall for the second straight session. Traders spent months betting that President Trump would never let this conflict push energy prices high enough to break the economy. That bet paid off. The war premium is coming out fast and the only question now is whether the market has already given back too much. Inventories took catastrophic damage during the conflict and nobody has started rebuilding yet. Keep reading for what the charts are saying and where the real risk sits from here.