As of today, August WTI crude oil is up by $0.20 (+0.29%) to reach $69.80 per barrel, while August RBOB gasoline has increased by $0.0070 (+0.32%). Both crude oil and gasoline prices have reached two-week highs due to comments from the UAE Energy Minister indicating the need for OPEC+ to increase output amid a lack of significant inventory buildups.
Heightened tensions in the Middle East, particularly following attacks by Yemen’s Houthi rebels on merchant ships in the Red Sea, are supporting crude prices. These incidents could raise shipping costs, making crude supplies more expensive. Additionally, OPEC+ decided to raise production by 548,000 barrels per day starting August 1, well above the anticipated 411,000 bpd increase, as part of a strategy to stabilize oil prices and penalize overproducing member states.
According to the latest EIA report, U.S. crude oil inventories have decreased by 7.1 million barrels, exceeding expectations of a 1.6 million barrel drop. However, crude oil production in the U.S. fell by 0.4% to 13.385 million bpd, while the active U.S. oil rig count has reached a 3.75-year low of 425 rigs.
