Sep WTI crude oil (CLU24) on Wednesday closed up +3.18 (+4.26%), and Sep RBOB gasoline (RBU24) closed up +9.82 (+4.19%).
Crude oil prices Wednesday rallied sharply. Wednesday's fall in the dollar index (DXY00) to a 1-1/2 week low was bullish for energy prices. Crude is also climbing on increased geopolitical tensions in the Middle East that could lead to a disruption of the region's crude supplies after Israel launched an airstrike in Iran that killed a Hamas leader and an airstrike in Beirut that killed a Hezbollah leader. Iranian Supreme leader Ayatollah Ali Khamenei said he had a "duty to seek vengeance" and that Israel should prepare for "severe punishment." Crude prices extended their gains after weekly EIA crude inventories fell more than expected to a 5-3/4 month low.
