May WTI crude oil prices rose 6.96% to $6.57, while May RBOB gasoline prices increased by 2.74% due to uncertainties surrounding the US-Iran ceasefire and the ongoing blockage of the Strait of Hormuz. The strait, which normally handles about 20% of the world’s oil, remains largely closed as Iran restricts transit, with over 800 vessels trapped and over 1,000 waiting to cross.
Amid these tensions, OPEC+ announced a plan to boost production by 206,000 barrels per day in May, a move complicated by the ongoing conflict in the Middle East. Meanwhile, US crude oil inventories increased by 1.5% above the seasonal five-year average as production fell 0.4% week-over-week to 13.596 million barrels per day.
Baker Hughes reported an addition of two active US oil rigs, bringing the total to 411, just above a 4.25-year low. This marks a significant decline from a 5.5-year high of 627 rigs in December 2022.
