WTI crude oil for May rose by $5.16 (+5.46%) to close at $99.00 on Friday, while May RBOB gasoline increased by $0.1070 (+3.47%) due to escalating fears of a prolonged war in Iran, which has entered its 27th day. Iran’s missile exchanges with Israel and attacks targeting Gulf states have heightened concerns, prompting traders to increase their positions. The Pentagon is considering deploying an additional 10,000 troops to the Middle East, adding to the existing 5,000 troop presence.
Saudi Arabia intercepted two ballistic missiles targeted at Riyadh, and the UAE has closed an Iranian-owned hospital as regional tensions rise. Furthermore, the International Energy Agency noted that over 40 energy sites across nine Middle Eastern countries have been severely damaged, potentially leading to further disruptions in global supply chains. The situation in the Strait of Hormuz, a crucial oil transport route handling 20% of the world’s oil, remains precarious, with Goldman Sachs warning that crude prices could exceed $150 per barrel if disruptions continue.
In related developments, OPEC+ announced plans to increase crude output by 206,000 barrels per day in April, though this could be undermined by production cuts amid the ongoing conflict. U.S. crude production stood at 13.657 million barrels per day, down 0.1% week-on-week, while the number of active U.S. oil rigs fell to 409, just above the 4.25-year low.
