**Crude Oil and Gas Prices Surge Amid Regional Tensions**
On Tuesday, September WTI crude oil closed at $84.65 per barrel, up 0.52%, while September RBOB gasoline rose to $3.31 per gallon, increasing by 0.97%. These prices reached three-week highs as tensions between the U.S. and Iran continued over control of the Strait of Hormuz, which is crucial for Middle Eastern crude supplies. Notably, a tanker from the UAE was detained by Iran, further escalating the situation.
In the week ending August 7, U.S. crude oil inventories decreased by 1.8% below the seasonal five-year average, while gasoline supplies fell by 5.8%. The U.S. Energy Information Administration (EIA) is expected to report a 200,000-barrel increase in crude inventories and a 1.5 million-barrel drop in gasoline supplies. Iranian military officials have stated that no vessel can transit the strait without their supervision, contradicting U.S. claims of control.
Despite the geopolitical tensions, around 9 million barrels per day crossed the Strait of Hormuz last week, surpassing expectations of 4 million bpd. Meanwhile, the International Energy Agency has predicted worsening global oil supply deficits due to ongoing disruptions linked to the U.S.-Iran conflict and the conflict in Ukraine, where increased drone attacks have hampered Russian oil infrastructure, reducing crude production to the lowest levels seen in six years.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
