**Oil Prices Decline Amid Geopolitical Tensions**
On Monday, April WTI crude oil closed down $5.21 (-5.28%) at $93.36 per barrel, while April RBOB gasoline fell $0.0411 (-1.35%). The drop in crude prices is attributed to optimism over the resumption of oil tanker movements through the Strait of Hormuz, following reports of several vessels navigating the area safely. Currently, Iran has been engaged in military conflicts, impacting oil production and transport in the region, causing Persian Gulf oil producers to cut output by approximately 6% as their storage facilities reach capacity.
The ongoing conflict, now in its seventeenth day, has escalated tensions, with the U.S. targeting military sites in Iran, which exports nearly all its oil from Kharg Island. Goldman Sachs warns that if transport through the Strait of Hormuz remains disrupted, crude prices could exceed $150 per barrel, surpassing the 2008 record high. As of now, floating storage of Russian and Iranian crude has increased by over 40% compared to last year, reaching approximately 290 million barrels, further constraining oil availability in the global market.
