Tightening Oil Supplies Fuel Crude Price Surge Amid US-Iran Escalation

Crude oil prices surged on Thursday due to increased tensions between the US and Iran. The Strait of Hormuz remains closed, restricting global oil supplies.

The November WTI crude oil contract (CLX26) rose by +2.45 (+2.71%) to close at a new high. Gasoline prices also gained, with the November RBOB gasoline contract (RBX26) increasing by +0.1421 (+4.36%).

EIA data showed that US crude oil inventories are above their 5-year average, while gasoline and distillate inventories are below theirs.

Saudi Arabia's crude exports have rebounded to pre-war levels, while Russian oil production has been impacted by Ukraine's drone attacks. The IEA warned of a significant drop in global oil demand due to high prices and restricted supply.