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Middle East tensions lift crude oil to a 3-month high
October WTI rose 1.4% and October RBOB gasoline surged 2.7% after strikes and attacks in and around the Strait of Hormuz disrupted Middle East supply.
Middle East hostilities have pushed crude oil sharply higher, with October WTI crude oil jumping to a 3-month high. Yahoo Finance data shows the October WTI contract (CLV26) rose 1.26, or 1.4%, on the day, while October RBOB gasoline (RBV26) climbed 0.0878, or 2.7%.
Crude prices rose after the United States and Iran exchanged strikes in the Strait of Hormuz over the weekend, and Saudi Arabia said attacks halted operations at several oil facilities. The outlet also points to a new attack on Saudi Arabia's Jazan refinery, after the refinery had halted operations in July, along with attacks on Saudi Aramco facilities in Abha and Najran that reportedly caused fires and injuries.
Support also came from signs of tightening global supply, according to energy trader Vitol Group. Vitol said markets are tightening due to the loss of about 2 million bpd from Middle East crude exports and a further 2 million bpd from Russia linked to Ukraine-related drone attacks.
Further supply disruption signals included compiled data cited by Yahoo Finance showing Saudi Arabia's August crude exports fell to about 3 million bpd, the lowest in nine years. The report also notes concerns that Israel could be drawn further into the US-Iran conflict, alongside a weaker US dollar index that was reported as falling to a 2-week low.
Latest closeWTI crude $97.01 ▲4.3%|Gasoline (RBOB) $3.062 ▼5.8%|Dollar index 98.78 ▼0.1%