Middle East Tensions Send Oil Prices Soaring to $107 a Barrel
Oil prices surged to $107 a barrel on September 10 as tensions in the Middle East escalated, sparking concerns about global supplies. The price hike comes after a week of renewed fighting in the region, with Iran signaling it won't back down from an American naval blockade and will escalate its strikes if attacked.
The US Energy Information Administration projects that US diesel inventories will fall to their lowest levels in over two decades this month. Meanwhile, gasoline prices at the pump hit a Labor Day record, while US diesel futures surged above $5 a gallon for the first time since April 2022.
Rebecca Babin, senior energy trader at CIBC Private Wealth Group, said crude is trading at its highest levels since May due to escalating geopolitical risk. As prices push into triple figures, trend-following commodity trading advisers flipped to 100% maximum long on Thursday in Brent, suggesting they've exhausted buying capacity for this session.