**Oil Prices Surge Following Middle East Tensions**
April WTI crude oil prices rose by $5.49 (6.04%) to $96.62, while April RBOB gasoline increased by $0.0878 (3.25%) amid escalating Middle East tensions. The surge in prices is attributed to Israel bombing 30 Iranian oil depots and Saudi Arabia reducing production as oil storage facilities approach capacity.
The closure of the Strait of Hormuz, a key passage for oil shipments, further exacerbates the situation. Goldman Sachs estimates a real-time risk premium for crude oil at $18 per barrel due to potential disruptions. Meanwhile, OPEC+ has announced plans to increase crude output by 206,000 barrels per day in April, although this may be hindered by ongoing conflicts in the region.
Current data indicates approximately 290 million barrels of Iranian and Russian crude are in floating storage, reflecting over a 50% increase from the previous year due to sanctions. As of late February, U.S. crude oil production remained steady at 13.696 million barrels per day, with oil rig counts slightly increasing to 411, above a recent low of 406.
