On August 25, WTI crude oil increased by $0.73 (1.12%), while RBOB gasoline dropped by $0.94 (0.35%). Crude prices were boosted by easing trade tensions as the U.S. moves closer to agreements with China and other partners, alongside ongoing sanctions against Iran confirmed by U.S. Energy Secretary Wright. In contrast, rising gasoline prices were pressured by a stronger dollar and a declining crude crack spread, which fell to a 1.5-week low.
Crude oil’s underlying support comes from projections of strong demand, as the American Automobile Association anticipates a record 61.6 million Americans will travel by car during the July 4 holiday, up 2.2% from last year. Meanwhile, OPEC+ has agreed to increase crude production by 411,000 barrels per day (bpd) for July, aiming to gradually restore 2.2 million bpd of production, which had been cut for two years. As of May, OPEC crude production rose by 200,000 bpd to 27.54 million bpd.
As of June 20, U.S. crude oil inventories were reported at 10.9% below the seasonal 5-year average, with gasoline inventories down 2.8% and distillate inventories down 20.3%. Active U.S. oil rigs decreased to 438, the lowest in nearly four years, reflecting a decline from a high of 627 rigs recorded in December 2022.
