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Oil gives back early gains after bearish EIA inventory read
WTI futures were down 0.7% while gasoline rose 0.6%, as a bearish weekly EIA inventory report outweighed supply-tightening fears tied to Strait of Hormuz disruptions and strikes on Russian energy infrastructure.
Crude oil prices reversed from early gains to trade lower after a bearish weekly inventory report from the US Energy Information Administration, according to Yahoo Finance. August WTI crude oil (CLQ26) was down 0.5 cents, or 0.7%, while August RBOB gasoline (RBQ26) was up 2.1 cents, or 0.6%, leaving the complex mixed.
Oil rose earlier as the US launched airstrikes against Iran for a fifth straight day in response to Iranian attacks on shipping in the Strait of Hormuz, a route that could tighten global supplies if disruptions persist. The US action followed additional pledges to intensify pressure until Iran stops attacking ships and opens the waterway, while Iran responded with missile and drone attacks against Kuwait.
The International Maritime Organization said crossing the Strait of Hormuz is too dangerous at the moment, and visible transit through the strait has fallen sharply in recent days. Yahoo Finance also cited support for crude from Ukraine intensifying drone attacks on Russian oil infrastructure, including data from OPEC showing Russian crude production at 8.928 million bpd in June, the lowest in 2.5 years.
Further reported factors included Russian crude-processing rates averaging 3.91 million bpd in the first 10 days of July, the lowest in 21 years, and Bloomberg reporting Ukrainian strikes on Russian fuel-producing facilities more than 50 times this year, hitting at least 24 of Russia’s 34 largest refineries. Yahoo Finance noted the strikes have deepened a nationwide gasoline shortage, with major refineries shut and the government banning almost all gasoline and jet fuel.
Latest closeWTI crude $79.00 ▼0.8%|Gasoline (RBOB) $3.114 ▼5.7%