The latest
Trump declared the U.S.-Iran ceasefire over after ordering new strikes this week, and oil markets are entering the moment with historically thin reserves. U.S. crude climbed to $73.90 a barrel, its highest since late June, while gasoline futures rose 6.1% and diesel jumped more than 10%.
Details
- U.S. commercial crude inventories rose 3 million barrels last week, the first increase after 10 straight weeks of drawdowns, per the Energy Department.
- The Strategic Petroleum Reserve has fallen to its lowest point since 1983, and Washington authorized only about 500,000 of the 40 million barrels it had approved for release.
- Gulf Coast gasoline stockpiles are 7.2 million barrels below the seasonal norm, according to OPIS.
- Diesel inventories are at their lowest since the early 2000s, even as July exports approach record levels, Kpler data show.
- Regular gasoline averaged $3.85 a gallon Thursday, up from $2.98 when the conflict began.
What to watch
Analysts say the real test is whether the Strait of Hormuz, which carries roughly 20% of global oil flows, closes again. “Once the shelf is bare, there’s nowhere to turn,” said Andy Lipow of Lipow Oil Associates. With inventories already stretched, the U.S. would have little room to absorb a new disruption.
