**July WTI crude oil prices rose to $96.38, closing up 0.26% on Friday, while RBOB gasoline increased by 2.31% to $3.34 per gallon.** This rise in crude oil prices follows ongoing geopolitical tensions, particularly concerning the US-Iran conflict, which has severely disrupted oil supply routes through the Strait of Hormuz, crucial for global oil transport.
Recent reports indicate that Pakistan has sent a significant military force, including 8,000 troops and fighter jets, to Saudi Arabia amid rising tensions in the region. Additionally, Goldman Sachs estimates that up to 14.5 million barrels per day of Persian Gulf crude output have been curtailed, contributing to a drawdown of nearly 500 million barrels from global stockpiles, potentially reaching one billion barrels by June.
Meanwhile, the International Energy Agency (IEA) reported an ongoing decline in global oil inventories, with March and April showing a decrease of about 4 million barrels per day. The IEA anticipates a “severely undersupplied” market until at least October. In the US, crude oil inventories were reported down 1.7% below the seasonal 5-year average as of May 15, while active oil rigs increased to 425, marking a 10.5-month high.
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