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Crude and gasoline rise on intensifying global supply disruption risks
WTI is up 2.8 percent to a 6-week high, while gasoline gains 0.5 percent to a 2-month high, despite an EIA report showing unexpected inventory increases.
Crude oil and gasoline prices jumped, with WTI crude for September up 2.8 percent to a 6-week high and September RBOB gasoline up 0.5 percent to a 2-month high, as concerns about global supply disruptions intensified, according to Yahoo Finance.
The move has been tied to escalation in the US-Iran war that has curtailed oil tanker traffic through the Strait of Hormuz, as well as threats by Houthi militants to blockade shipping through the Red Sea.
In the background of the disruptions, the US conducted an 11th straight day of attacks on Iran aimed at degrading Iran's ability to threaten commercial shipping in the Strait of Hormuz, Iran retaliated by striking US bases in Bahrain, Kuwait, and Jordan, and reporting also cited remarks that the US has no interest in meeting Iran until serious peace negotiations are ready.
The tighter supply outlook has also been supported by additional regional risks and disruptions, though prices pulled back from their intraday highs after weekly EIA crude and gasoline inventories unexpectedly increased.
Latest closeWTI crude $92.23 ▲6.2%|Gasoline (RBOB) $3.324 ▼2.7%