On August 11, September WTI crude oil closed up $1.15 (+1.42%) and September RBOB gasoline rose $0.0561 (+1.79%). This increase follows Iran’s recent attack on two oil vessels in the Strait of Hormuz, indicating Iran’s intent to threaten maritime traffic and assert control over the strategic waterway.
The U.S. is shifting its strategy against Iran, with Treasury Secretary Bessent announcing unprecedented economic measures aimed at forcing the reopening of the Strait. Despite these efforts, oil prices remain below Tuesday’s two-week high, with only five vessels currently transiting the Strait, significantly down from 14 earlier in the year. Concurrently, OPEC has restored its production cutbacks, raising output by 188,000 barrels per day (bpd) for September, amid a backdrop of increased military tensions and slow traffic affecting global supply.
In the U.S., crude oil inventories rose by 17.4 million barrels, the largest increase in over three years, while gasoline supplies dipped slightly. Current U.S. crude oil production is at 13.805 million bpd, nearing the record of 13.862 million bpd reached in November 2022. The number of active U.S. oil rigs has also increased by one to a 1.25-year high of 455.
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