June WTI crude oil prices rose by $3.13 (+3.25%) and June RBOB gasoline prices increased by $0.0241 (+0.72%) on April 24, marking a two-week high for crude and a 3.75-year high for gasoline. The rise is attributed to stalled peace talks between the US and Iran, which have kept the Strait of Hormuz closed, limiting global oil supplies. Approximately 14.5 million barrels per day (bpd) of crude output in the Persian Gulf has been curtailed, contributing to a potential global crude stockpile decline of nearly 1 billion barrels by June.
Gasoline prices surged alongside crude oil as the International Energy Agency reported that 13 million bpd of global oil supply has been affected due to the Iran conflict and Strait closure. The blockade initiated by the US on all vessels near Iranian ports has compounded these shortages. Meanwhile, OPEC+ announced a planned increase in crude output by 206,000 bpd in May, although this is now uncertain due to ongoing geopolitical tensions.
In the US, crude oil production fell slightly to 13.585 million bpd, and the number of active oil rigs decreased to 407, near a four-and-a-half-year low. This follows a trend of reduced production capability amidst ongoing conflicts, including the ongoing Russia-Ukraine war, which has also limited crude exports from Russia.
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