June WTI crude oil (CLM26) ton Wednesday closed down -1.16 (-1.14%), and June RBOB gasoline (RBM26) closed down -0.0790 (-2.14%). Crude oil and gasoline prices settled lower on Wednesday, with crude oil falling from a 1-week high. Wednesday's rally in the dollar index ($DXY) to a 1.5-week high induced long liquidation in energy futures and weighed on prices. Crude prices initially moved higher on Wednesday as the ongoing closure of the Strait of Hormuz is tightening global oil supplies. Also, Wednesday's weekly EIA report was bullish for crude and gasoline as weekly inventories fell more than expected.
Crude prices continue to climb after President Trump and Iran rejected each other's latest peace proposals to end the 10-week conflict. President Trump called Iran's response to his peace proposal a "piece of garbage" and said that the current ceasefire was on "life support." Mr. Trump also said, "Iran will make a deal or be decimated." President Trump said on Monday that the US may restart the operation as soon as this week to guide commercial ships through the Strait of Hormuz with naval and air support.
