**Crude Oil Prices Surge Amid Middle East Tensions**
On Monday, September WTI crude oil rose by $2.10 to close at $84.92 per barrel, marking a 2.55% increase, while September RBOB gasoline climbed by $0.0860 to $3.27 per gallon, up 2.70%. These prices reached three-week highs amid ongoing concerns regarding the US-Iran conflict and its potential impact on Middle East oil supplies. The dollar index also fell to a 2.25-month low, further boosting energy prices.
US Energy Secretary Chris Wright indicated that the US has no plans for de-escalation with Iran, which could restrict crude supply. Recent Israeli attacks on Iranian-backed groups and ongoing hostilities in the region have dampened expectations for a swift resolution. Meanwhile, OPEC’s crude production is projected to hold steady at 19.44 million barrels per day following a restoration of supply cuts from earlier this year. Despite these tensions, US Energy Secretary Wright noted that an unexpected 9 million bpd crossed through the Strait of Hormuz last week, significantly above earlier estimates.
The International Energy Agency (IEA) reported that global oil supply deficits are expected to worsen, with inventories projected to fall at double the previous rate amid continued disruptions from the US-Iran war.
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.
