Crude oil price: The already boiling crude oil prices — trading higher for eight sessions in a row — due to the ongoing US-Iran war, received a fresh fillip from the Energy Information Administration’s (EIA) latest data, which drove the Brent crude and US West Texas Intermediate (WTI) futures by nearly 6% on Wednesday, 29 April.
US crude rose 6.61% to $106.58 a barrel, and Brent rose to $117.81 per barrel, up 5.9% after the EIA, after the US oil stocks plummeted sharply and amid little signs of resolution to the Middle East crisis that’s entered its third month now.
This marks the fourth straight month of gains for crude oil prices, which are up 4% in April so far, building on the over 50% rally seen in March due to the onset of the US-Israeli war with Iran.
What’s driving crude oil prices?
The crude oil prices remain elevated due to the energy supply disruption through the Strait of Hormuz, a critical chokepoint accounting for 20% of global oil passage. US President Donald Trump‘s statement that he was unhappy with Iran’s latest proposal has dented hopes of a swift resolution to the ongoing conflict.
In a social media post, he urged Iran to sign a deal.
The US has signalled it would stick with a naval blockade of Iranian ports as it tries to force Tehran back to the negotiating table. The blockade lies at the heart of the impasse, with the Islamic Republic insisting it won’t restart negotiations or reopen the Strait of Hormuz as long as the naval restrictions stay in place.
Meanwhile, oil prices surged after US oil stockpiles plunged last week due to surging global demand amid the war. Due to this, the United States has turned into a net crude exporter on a weekly basis for the first time on record, the Reuters report suggested.
Crude inventories fell by 6.2 million barrels to 459.5 million barrels in the week ended April 24, the EIA said, compared with analysts’ expectations in a Reuters poll for a 231,000-barrel draw.
(With inputs from Reuters)
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