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Crude falls as Persian Gulf tensions ease, gasoline also declines
September WTI settled down 2.0%, while weekly data cited by the EIA points to a worsening global supply deficit even as inventories rose in the US.
Crude oil prices fell as concerns about the Persian Gulf eased slightly, with Thursday lacking any overnight reports of new US or Iran military attacks in the region. Yahoo Finance reports that September WTI crude oil (CLU26) closed down 2.02, or 2.4%, and September RBOB gasoline (RBU26) finished lower by 0.0257, or 0.8%.
The outlet also linked the softer tone to reporting that the Trump administration is pivoting toward using a naval blockade to apply economic pressure on Iran, rather than pursuing new military strikes. It noted there has been no reported progress on an agreement to reopen the Strait of Hormuz, and traffic there remains slow, tightening global crude supplies.
Additional pressure came from carryover effects tied to an EIA report that showed a sharp weekly rise in US oil inventories. At the same time, the International Energy Agency said in its monthly update that the global oil supply deficit is expected to worsen, projecting faster inventory declines in the third quarter due to disruptions from the US-Iran conflict.
Beyond Middle East supply risks, Yahoo Finance cited damage to Russian energy infrastructure from Ukraine, saying Ukraine intensified drone attacks on Russian refineries, tankers, and pipeline systems in July. It added that EA Analytics expects Russian crude-processing rates to average 3.51 million bpd in July, the lowest in 24 years, according to the article text provided.
Latest closeWTI crude $82.40 ▲1.4%|Gasoline (RBOB) $2.901 ▼7.3%