**September WTI crude oil rose by $0.76 (+0.98%) today, while September RBOB gasoline increased by $0.0542 (+1.84%).** The rise in prices is attributed to a decline in the U.S. dollar to a seven-week low, along with uncertainties surrounding a proposed reopening of the Strait of Hormuz by Iran and Oman. Iranian officials have indicated that the normalization of this crucial shipping route hinges on the U.S. lifting its blockade on Iranian ports.
Concerns over oil supply also persist, as Yemen’s Houthi rebels reportedly targeted a Saudi oil tanker, pledging to escalate attacks in the region. Furthermore, Ukraine has intensified drone strikes on Russian oil infrastructure, which have already resulted in significant damage, causing Russian crude-processing rates to plummet to an average of 3.51 million barrels per day in July, the lowest in 24 years. Countering these factors, robust crude supplies in China, alongside increases in Russian crude exports, may exert downward pressure on oil prices.
OPEC’s recent decision to restore 188,000 barrels per day to their production for September brings total production to 19.44 million barrels per day, following a previous cutback this year. Meanwhile, U.S. crude oil inventories as of July 31 were noted to be 6.2% below the seasonal five-year average, while U.S. production edged up to 13.804 million barrels per day, nearing the record high established in November 2022.
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