WTI Crude Prices Slump Amid Dollar Strength and Increased Middle East Supplies
Crude oil prices are under pressure due to increased Middle East crude supplies. October WTI crude oil (CLV26) is down -0.09 (-0.11%) today, while October RBOB gasoline (RBV26) is up +0.0079 (+0.27%). The dollar index has risen to a 1-week high, weighing on crude prices.
The Strait of Hormuz, a crucial shipping route, has seen an increase in supplies despite the US-Iran war. Iran and Oman are close to finalizing an agreement that would establish a safe route through the strait within 30-60 days.
Crude losses are limited by concerns over Russian crude production disruptions due to potential escalation of attacks on Ukraine. The International Energy Agency (IEA) has warned of a worsening global oil supply deficit, with oil inventories expected to fall in Q3 at twice the previously estimated rate.