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Barchart
Barchart
Rich Asplund

Diplomatic Hopes in the Middle East Knock Crude Prices Lower

October WTI crude oil (CLV26) closed down -1.19 (-1.24%) on Tuesday, and October RBOB gasoline (RBV26) closed up +0.0176 (+0.51%).

Crude oil and gasoline prices settled mixed on Tuesday, with crude falling to a 3-week low. Tuesday’s rally in the dollar index ($DXY) to a 7-week high is bearish for energy prices. Crude prices also fell on Tuesday amid reports that said Iran will reopen the Strait of Hormuz in seven days if the US lifts its blockade. Crude prices recovered from their worst level and gasoline prices rallied after the crude crack spread rose to a record high on Tuesday, encouraging refiners to purchase crude oil and refine it into gasoline and distillates.

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