Middle East Tensions Drive Crude Prices Higher

Crude oil and gasoline prices are rising today, with gasoline hitting a 2-week high. Tensions in the Middle East are elevating prices, with Houthi rebels attacking ships in the Red Sea, potentially prompting US military retaliation. The dollar index’s rally is limiting crude gains. Saudi Arabia’s Aramco raised crude prices for Asian buyers next month.

Yemen’s Houthi rebels attacked another merchant ship in the Red Sea, raising fears of increased freight rates and insurance costs for shippers. Saudi Arabia’s Aramco raised prices for its Arab Light crude, indicating stronger global demand. OPEC+ agreed to raise crude production by 548,000 bpd, aiming to reverse a 2-year production cut.

Concerns about a global oil glut persist as OPEC+ plans to boost crude output, potentially penalizing overproducing members. Tariff worries ahead of President Trump’s deadline for reciprocal tariffs are dampening oil prices. Crude oil stored on tankers globally increased by 3.6%, adding pressure on prices.

US crude oil inventories are below seasonal averages, while gasoline and distillate inventories are also lower. US oil rigs fell to a 3.75-year low, reflecting a significant decline from previous highs. These factors are contributing to fluctuations in crude oil prices.

Read more at Yahoo Finance: Crude Prices Supported by Elevated Risks in the Middle East