Crude Prices Supported by Dollar Weakness and Middle East Tensions
WTI crude oil prices rose on Tuesday, up 1.42% or +1.67% from the previous session. RBOB gasoline prices dropped 0.37% to a lower level. Crude oil and gasoline prices moved in mixed fashion, with crude hitting a 3-week high. The dollar index's sharp decline to a 2.5-month low and the unresolved Middle East tensions helped support crude prices.
The sharp drop in the dollar index is favorable for energy prices. Ongoing tensions in the Middle East, particularly after the UAE cutting economic ties with Iran, have kept the Strait of Hormuz closed and limited crude supplies, exerting upward pressure on oil prices. Meanwhile, fresh Israeli attacks on Iran-backed Hezbollah in Lebanon and Iran-backed Hamas in Gaza have added to the Middle East's volatility.
ExxonMobil's senior adviser expressed concerns about the potential escalation, which could limit crude supplies from the Middle East. Additional bearish factors include OPEC's decision to increase production by 188,000 bpd in September, despite the ongoing US-Iran military attacks in the region. US crude oil inventories were slightly higher than expected, while gasoline inventories plunged below the 5-year average.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
