September WTI crude oil closed down $4.33 (5.11%) on Monday, while September RBOB gasoline fell by $0.1475 (4.74%), marking a three-week low for gasoline prices. Easing geopolitical tensions, particularly after President Trump called off planned strikes on Iran and noted progress in negotiations with Oman regarding the Strait of Hormuz, contributed to the decline in both crude oil and gasoline prices.
In addition, strong crude inventories in China, which have only dropped by 54 million barrels since early May to approximately 1.2 billion barrels, may further reduce Chinese crude purchases, exerting bearish pressure on oil prices. Conversely, Russian crude production has decreased to 8.928 million barrels per day in June—the lowest in 2.5 years—while Russia continues to export an average of over 4 million barrels per day, adding to global supply amid reduced refining capacity due to ongoing conflicts in Ukraine. OPEC approved a production increase of 188,000 barrels per day for September, restoring all cuts made in 2023.
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