Oil Prices Rebound Amid Geopolitical Tensions
Oil prices have rebounded in recent days as traders focus on geopolitical developments and react to the latest EIA Weekly Petroleum Status Report.
The report showed that crude inventories increased by +0.1 million barrels, compared to analyst forecasts of +0.6 million barrels, leaving them 1% above the five-year average for this time of year.
Total motor gasoline inventories declined by -2.5 million barrels, while distillate fuel inventories decreased by -2.2 million barrels from the previous week.
The Strait of Hormuz remains a major concern, with Iran's Islamic Revolutionary Guard Corps announcing a revenue-sharing deal with Oman. However, this does not necessarily mean that the strait will be fully reopened, as the US has always opposed any fees in the area.
The U.S. Strategic Petroleum Reserve (SPR) continues to sell oil from its reserves, reaching levels last seen in 1982 at 289.7 million barrels.