October WTI crude oil prices fell by $2.06 (-2.35%) to $85.86, while RBOB gasoline prices decreased by $0.0820 (-2.69%) to $2.93. Both commodities are under pressure largely due to a stronger dollar and increased crude supply moving through the Strait of Hormuz, where approximately 40 tankers transported around 16 million barrels of crude last Friday.
Energy markets are anticipating new US economic sanctions on Iran, with Treasury Secretary Scott Bessent expected to detail these measures today. These sanctions aim to isolate Iran’s economy, a stance underscored by Bessent’s statement that the goal is to “sever every economic lifeline that sustains the tyrannical regime until Iran stands alone.” In response, Iran’s leadership has warned that any support for these sanctions will be considered an act of war against them.
In other developments, US crude oil production slightly increased to 13.83 million barrels per day, while active US oil rigs fell to 452. A recent EIA report indicated that US crude inventories were 0.3% above the five-year average, but gasoline inventories were 5.3% lower. Additionally, OPEC recorded a production increase of 1.16 million barrels per day in July, bringing total crude production to 19.44 million barrels per day.
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