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Barchart
Barchart
Rich Asplund

Heightened Middle East Tensions Boost Crude Oil Prices

September WTI crude oil (CLU26) closed up +0.89 (+1.05%) on Wednesday, and September RBOB gasoline (RBU26) closed down -0.0466 (-1.41%).

Crude oil and gasoline prices settled mixed on Wednesday, with crude oil posting a 4-week high. Wednesday’s sharp decline in the dollar index ($DXY) to a 2.5-month low was bullish for energy prices. Also, the lack of a clear path to a resolution in the Middle East is keeping the Strait of Hormuz closed and limiting crude supplies from the Middle East, keeping upward pressure on oil prices. Crude prices fell from their best level and gasoline prices turned negative on Wednesday after weekly EIA crude inventories rose more than expected and gasoline supplies unexpectedly rose.

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