Crude oil prices rose to a one-month high on August 10, 2023, with August WTI crude increasing by 2.74% to $81.92 per barrel. Gasoline prices also surged, reaching a 7-week high with August RBOB gasoline rising by 3.19% to $3.23 per gallon. This spike is attributed to escalating tensions between the US and Iran, as military actions threaten supplies through the critical Strait of Hormuz, where oil flows have plummeted from 9.4 million barrels per day (bpd) to about 5.5 million bpd in recent weeks.
As hostilities intensified, the US conducted airstrikes against Iranian military infrastructure for the sixth consecutive night, prompting Iran to retaliate against US bases in Kuwait, Jordan, and Bahrain. The situation has led President Trump to consider expanding military operations further, including potential actions against Iran’s main oil export terminal.
In parallel, global oil supplies are tightening, exacerbated by reduced flows from the Strait and significant decreases in Russian oil production, which fell to 8.928 million bpd in June. The International Energy Agency (IEA) predicts a decline in world oil consumption, estimating a drop of 1.1 million bpd this year. Meanwhile, the US Department of Energy projected a slight increase in crude production to 13.78 million bpd by 2026.
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.
