Crude Prices Slide Amid US Inventory Surge and Global Supply Woes

Crude oil prices eased on Wednesday as US crude oil inventory surged to its largest increase in over three years. The September WTI crude oil (CLU26) price was down -0.19 (-0.23%), and September RBOB gasoline (RBU26) was down -0.0276 (-0.88%).

The International Energy Agency (IEA) reported that the global oil supply deficit will worsen, even as oil demand takes a hit from the war and high prices. The IEA also stated that global oil inventories will fall in Q3 at twice the previously estimated rate due to ongoing disruptions from the US-Iran war.

Pakistan suggested on Tuesday that the US and Iran were close to an arrangement that could reopen the Strait of Hormuz, which remains shut until all conditions are met. However, President Trump said the US has 'total control over the Hormuz Strait' and that 'we own it.'