WTI Crude Six Days Up Amid Geopolitical Premium; Methanol Inventories Fall to 400K Tons as of July 17

According to Jin10 Futures, WTI crude oil futures recorded six consecutive gains as of July 17, driven by escalating U.S.-Iran tensions and elevated geopolitical risk premium amid low inventory levels, according to Sun Fukun, deputy general manager of Huayuan Futures. Crude's underlying dynamics hinge on inventory-supply dynamics, with destocking cycles potentially extending into August and crude elasticity rising significantly.

Methanol inventories declined sharply from 1.53 million tons at the start of 2026 to around 400,000 tons by July, amplifying price elasticity. Geopolitical tensions near the Hormuz Strait, critical for China's methanol imports, supported short-term rallies. Caustic soda and soda ash face weak demand with ample supply, lacking bullish drivers, with caustic soda demand tied to alumina refining and soda ash facing structural oversupply pressure.