Crude oil rises near $92, tests 3-month highs amid supply tightness
Crude oil rose to around the $92 per barrel mark, highest in three months, reflecting expectations of prolonged tight supply. Iran said it was close to agreeing a tanker route through the Strait of Hormuz with Oman.
Crude oil rose to the $92 per barrel mark on Monday, reaching a three-month high and sitting nearly 40% above levels from before the outbreak of the war in Iran, reflecting expectations of a prolonged period of tight supply. Iran said it was close to agreeing on a tanker route through the Strait of Hormuz with Oman. Washington’s hawkish rhetoric toward the corridor increased escalatory risks as the US and Iran continued to strike each others' military and commercial vessels. Energy Secretary Chris Wright said Washington would maintain its naval presence and blockade.
A larger rebound in crude prices was held back as major economies tapped inventories to tame higher import turnover. The US SPR fell to less than 290 million barrels, the lowest since 1982. 6 million barrels per day, pointing to a cutback in crude consumption despite steady demand for refined products.