June WTI crude oil (CLM26) rose by $3.18 (+3.12%) to recover from overnight losses, while June RBOB gasoline (RBM26) increased by $0.1323 (+3.68%) amidst escalating tensions in the Strait of Hormuz. The price surge followed claims from Iran’s FARS news agency that missiles hit a U.S. warship, which the U.S. subsequently denied.
On April 13, the U.S. initiated a blockade on vessels transiting the Strait of Hormuz, leading to a reduction of approximately 14.5 million barrels per day (bpd) in crude output from the Persian Gulf. The ongoing blockade could escalate global energy shortages, as the strait facilitates about 20% of the world’s oil trade. An estimated 500 million barrels have already been removed from global crude stockpiles, which may reach 1 billion barrels by June.
Recent statements from the UAE indicated a missile threat after Iranian drone attacks sparked a fire at the Fujairah oil industry zone. Meanwhile, OPEC+ announced a modest production increase of 188,000 bpd for June, despite current cuts due to the geopolitical situation.
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.
