Key facts
- September WTI crude oil futures gained over 11% for the week, surpassing $80.
- Renewed U.S.-Iran military actions heightened fears of Persian Gulf supply disruptions.
- U.S. crude inventories fell by 1.7 million barrels in the week ending July 10.
- Current crude stockpiles are 6% below the five-year average.
- Distillate inventories rose by 4.6 million barrels, while gasoline stocks fell by 1.5 million barrels.
September WTI crude oil futures experienced their strongest weekly gain in months, rallying over 11% to surpass $80. This surge followed a dramatic reversal from previous weeks, driven by renewed military action between the United States and Iran, which shifted market focus back to potential supply disruptions. The conflict intensified with U.S. airstrikes and Iranian missile and drone attacks, raising concerns about exports from the Persian Gulf and potential interference with shipping routes like the Strait of Hormuz and the Red Sea. Approximately one-fifth of global seaborne crude oil passes through the Strait of Hormuz. Supporting the price increase, U.S. crude inventories fell by 1.7 million barrels in the week ending July 10, according to the EIA, bringing total commercial stockpiles to 409.7 million barrels, 6% below the five-year average. Distillate inventories increased by 4.6 million barrels, while gasoline stocks decreased by 1.5 million barrels. Total products supplied averaged 20.3 million barrels per day over the last four weeks, a 0.3% year-over-year increase.