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Oil and gasoline drop as hopes rise for Strait of Hormuz reopening
WTI futures ended down 5.7% and gasoline fell 3.9%, with Saudi exports and deal optimism weighing on prices.
Oil and gasoline prices fell sharply for a second day on Tuesday, with September WTI crude down 5.7% to a 3-week low and September RBOB gasoline down 3.9% to a 4.75-month nearest-futures low, according to Yahoo Finance.
Market participants cited growing optimism that the United States and Iran are moving toward an agreement that would reopen the Strait of Hormuz, alongside expectations for additional crude supply.
The decline was also linked to higher Saudi oil exports through the Red Sea, including a busiest day since Houthi attacks began, as more ships transited through the Bab el-Mandeb chokepoint.
Additional drivers included commentary from US officials about the possibility of a deal within days, China crude inventory levels, and ongoing conflict impacts, including Ukraine drone attacks on Russian oil infrastructure during July, Yahoo Finance reported.
Latest closeWTI crude $75.12 ▼0.9%|Gasoline (RBOB) $2.832 ▼0.7%