Oil Prices Plummet as Strait of Hormuz Supplies Surge

Oil prices plummeted on Monday as supplies moved through the Strait of Hormuz. The October WTI crude oil (CLV26) closed down -2.05 (-2.35%) and the October RBOB gasoline (RBV26) closed down -0.0780 (-2.56%).

Crude prices have been under pressure after Axios reported that 40 tankers transited out of the Strait of Hormuz last Friday night, transporting around 16 million bbl of crude.

The Joint Maritime Information Center reduced the threat level for shipping in the Gulf of Oman to 'moderate,' one step lower than the previous assessment. This suggests that the threat of attack on shipping off the coast of Oman is possible but not likely.