Key facts
- Oil prices surged over $3 per barrel.
- Brent crude reached $87.95.
- WTI traded at $82.89.
- Middle East hostilities and U.S. crude inventory draws boosted prices.
- Refined fuel markets remain tight with record-high refining margins.
- Geopolitical tensions in the Middle East and Ukraine impact refined fuels.
- Export bans and low global fuel inventories affect diesel and gasoline prices.
- China's demand has helped stabilize global oil markets.
- China's significant stockpiles prevented a buying panic.
- Attacks on tankers in the Red Sea have occurred.
Oil prices experienced a surge of over $3 per barrel, with Brent crude reaching $87.95 and West Texas Intermediate (WTI) trading at $82.89. This increase is attributed to renewed hostilities in the Middle East and a significant draw reported in U.S. crude inventories. Despite the rise in crude oil prices, the refined product markets are experiencing a crunch, remaining tight with record-high refining margins. This situation is influenced by geopolitical tensions in the Middle East and Ukraine, alongside export bans and low global fuel inventories. Consequently, diesel and gasoline prices are more impacted than crude oil prices.