Oil Wrap: USO up 2.77% on Hormuz Supply Risk
WTI-tracking USO closed at US$134.54, up 2.77%, as Middle East chokepoint risk outweighed regional news on Brazil pre-salt, Guyana's Stabroek, and YPF. The post Oil Wrap: USO up 2.77% on Hormuz Supply Risk appeared first on The Rio Times .
On Thursday, August 20, the WTI-tracking USO fund surged 2.77% to $134.54 as geopolitical concerns over the Strait of Hormuz kept crude prices elevated. Brent settled at $93.41 a barrel, up 0.39% on the day but more than 5% higher over the week, indicating heightened geopolitical risk without a new trigger. Latin American equities varied, with Petrobras rising 2.54% to $19.01 due to record pre-salt output and the Tupi milestone, while YPF increased 1.72% to $50.92 on Vaca Muerta expectations.
Ecopetrol fell 1.34% to $17.65 despite participating in Brazil's pre-salt auction. The Gulf's chokepoint risk lifted US crude proxies, while Latin American producers moved independently. Brazil's pre-salt production reached a record 2.78 million barrels of oil equivalent per day, and a CNPE resolution could reduce industrial gas costs, weakening Petrobras' marketing monopoly.
Guyana's Stabroek block production share grew to 39.8%, changing the country's fiscal landscape. YPF's gain reflects optimism for Vaca Muerta shale, while Petrobras remains the anchor for deepwater growth in Brazil. Ecopetrol's decline suggests investors may consider other operational or fiscal concerns.
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