**Oil Prices Rise Amid Geopolitical Tensions**
On Wednesday, August WTI crude oil prices closed higher at $78.93 per barrel, marking a gain of 0.33%, while August RBOB gasoline rose to $3.32 per gallon, a 2.28% increase, reaching a seven-week high. The uptick in prices follows five consecutive days of U.S. airstrikes against Iran, prompted by Iranian attacks on shipping in the Strait of Hormuz. This conflict threatens to disrupt oil flows through the vital waterway, increasing concerns about potential shortages in global oil supplies.
The weekly EIA report revealed a smaller-than-expected decline in U.S. crude inventories, with a drop of 1.69 million barrels, against predictions of 2.1 million, leaving stock levels 6.2% below the seasonal five-year average. Gasoline inventories also decreased by 1.5 million barrels, and distillate stocks unexpectedly surged by 4.56 million barrels. As of July 10, U.S. crude oil production held steady at 13.861 million barrels per day, just shy of the record high. Meanwhile, active U.S. oil rigs remained unchanged at 445, still significantly below the 627 rigs reported in December 2022.
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