On Friday, August WTI crude oil closed up +1.88 (+2.82%) and RBOB gasoline rose +0.0346 (+1.61%). The rally was fueled by speculation that President Trump will announce sanctions on Russian energy exports on Monday, coupled with Bloomberg’s report that OPEC+ is considering a pause in oil production increases after their upcoming September rise of 548,000 barrels per day (bpd).
Despite the price increase, concerns loom over a potential global oil glut, as the International Energy Agency reported that inventories are rising at a rate of 1 million bpd. Further, Baker Hughes indicated that the number of active US oil rigs fell to a three-and-a-half-year low of 424 rigs, down from 627 in December 2022.
Notably, Yemen’s Houthi rebels carried out attacks on merchant ships in the Red Sea, raising concerns over shipping costs and further complicating the crude supply dynamics in the region.
