Oil Prices Soar as US Sanctions on Iran Intensify
Oil prices have extended their rally for a fifth consecutive day, reaching new highs as traders react to tighter US sanctions on Iran.
ICE Brent crude traded above $92 per barrel and NYMEX WTI moved past $86 per barrel, driven by concerns over tougher enforcement of economic penalties against entities supporting Iranian activities.
The latest US inventory figures showed a notable build in commercial crude stocks, despite expectations for a decline. U.S. commercial crude inventories rose by 4.4 million barrels to 428.8 million barrels, the third weekly increase and the highest level since May.
Refinery utilization climbed to 97.2%, while distillate inventories dropped by 1.5 million barrels to 105.6 million barrels amid tightened supply. Strong refining margins are incentivizing refiners to maximize run rates.