Crude Oil Prices: Rise as WTI Nears $78, Brent Tops $83 on Hormuz Risks

Crude oil prices moved higher Friday, Aug. 7, as uncertainty over the Strait of Hormuz brought supply risks back into focus. Brent crude traded around $83.34 a barrel, while U.S. West Texas Intermediate rose to about $77.81 in early trading, extending Thursday’s sharp rebound.

Both benchmarks were still heading for weekly losses of about 8% after a volatile stretch driven by changing expectations for a U.S.-Iran agreement. The latest concern is that reopening the Strait of Hormuz may not mean a full return to normal shipping.

Why Are Crude Oil Prices Rising Today?

Iran and Oman are discussing conditions for vessels using Hormuz, one of the world’s most important energy routes. Iran’s preliminary proposal could restrict ships it considers hostile and impose fees or penalties, while Washington opposes such charges. Industry sources also told Reuters that sanctions and insurance restrictions could make a proposed system difficult to operate.

The uncertainty matters because roughly one-fifth of global oil and liquefied natural gas normally moved through the strait before the conflict began. Oil prices therefore remain highly sensitive to any change in expectations for shipping access.

WTI Crude Tests Resistance Near $78.50

WTI has recovered from its early-August decline but is approaching an area that could determine whether the rebound extends.

WTI Crude Oil Daily Chart. Source: Ian Cooper on X

The chart shows WTI near $77.81, just below resistance around $78.50 and a descending trendline. Analyst Ian Cooper identified $75 as the first nearby support, followed by $70 if selling pressure returns.

A sustained move above $78.50 and the falling trendline would improve the short-term technical picture. Failure there would leave WTI vulnerable to another test of support. The chart’s relative strength index is also near the middle of its range, suggesting momentum has not yet produced a clear bullish signal.

Brent Crude Holds Above $81 Support

Brent is showing a similar recovery but remains below its broader descending trendline.

Brent Crude Oil Daily Chart.  Source: Ian Cooper (@icooperTrades) on X

The chart places Brent near $83.29, above support around $81.16. The next major horizontal resistance appears near $90, although the descending trendline would need to be cleared first.

That leaves Brent in a recovery phase rather than a confirmed breakout. Holding above $81 would support the rebound, while another move below that level would weaken the short-term setup.

U.S. Oil Inventories Add Supply Pressure

U.S. commercial crude inventories increased by 2.5 million barrels to 407 million barrels in the week ended July 31, according to Energy Information Administration data. Analysts had expected inventories to fall, making the build a bearish counterweight to geopolitical supply concerns. However, crude stocks remain about 6% below their five-year seasonal average.

U.S. Crude Oil Inventory Changes.  Source: Investing.com

Gasoline inventories fell by 1.6 million barrels, while distillate stocks dropped by 3.5 million barrels. Refinery utilization remained high at 96.5%, showing that U.S. refiners continue to process large amounts of crude during the summer demand season.

OPEC+ is also adding supply. Core members agreed to raise September production targets by about 188,000 barrels per day, completing the rollback of a 1.65 million-bpd voluntary cut. Actual supply growth remains uncertain because regional conflicts continue to disrupt production and exports.

For crude oil prices today, Hormuz remains the main short-term driver. A clearer path toward normal shipping could remove some of oil’s geopolitical premium, while renewed restrictions or disruption could keep Brent and WTI supported despite higher OPEC+ targets and rising U.S. crude inventories.