On April 10, WTI crude oil prices dropped to a three-week low, closing down 0.05% at $CLK26, while RBOB gasoline prices increased by 0.98%. This mixed performance comes amidst a potential two-week extension of the US-Iran ceasefire, which is aimed at facilitating further diplomatic negotiations. Concurrently, US crude oil inventories fell unexpectedly by 913,000 barrels, contrary to expectations of a build, providing some support for oil prices.
The International Energy Agency (IEA) reports that the ongoing Iran war and closure of the Strait of Hormuz have led to a shutdown of approximately 13 million barrels per day of global oil supply. Currently, Persian Gulf oil producers are facing a 6% cut in production due to local storage capacity issues exacerbated by US blockades affecting vessels linked to Iran.
According to the EIA, US crude oil production for the week ending April 10 remained steady at 13.596 million barrels per day. The report also highlighted that distillate inventories fell by 3.1 million barrels, while gasoline supplies saw a reduction of 6.3 million barrels. Furthermore, Baker Hughes noted the active US oil rig count remained unchanged at 411, slightly above a 4.25-year low.
