June WTI crude oil prices rose by $2.55 (+2.84%) and June RBOB gasoline prices increased by $0.0882 (+2.82%) amid escalating tensions in the Strait of Hormuz. The price surge follows the cancellation of US-Iran peace talks, with Iran seizing two ships and the UK’s Navy reporting attacks on cargo vessels by Iranian forces. Approximately 13 million barrels per day (bpd) of global oil supply is currently affected by the conflict, with US sanctions and regional production cuts exacerbating the situation.
As of April 17, US crude oil inventories rose unexpectedly by 1.93 million barrels to a 2.75-year high, while gasoline and distillate stocks saw larger-than-expected draws of 4.57 million barrels and 3.4 million barrels, respectively. Additionally, Baker Hughes reported a drop in active US oil rigs, with the count at 410, slightly above a four-and-a-half-year low of 406.
The International Energy Agency noted that up to 80 energy facilities have been damaged in the conflict, with recovery potentially taking up to two years. OPEC+ plans to restore production cuts are challenged as Middle Eastern producers are forced to limit output due to ongoing tensions.
