WASHINGTON / Content Syndication Services / – Oil prices rose more than $2 a barrel on Thursday as traders reacted to new tensions around the Strait of Hormuz and a sharp fall in U.S. crude inventories. Brent crude futures climbed $2.30, or 2.47%, to $95.40 a barrel. U.S. West Texas Intermediate crude gained $2.60, or 2.89%, to $92.63 a barrel.
The gains followed an earlier move in Asian trading, when Brent rose to $94.58 a barrel and WTI reached $91.74. U.S. crude futures had gained more than $3 earlier in the session before trimming part of the increase. The rise kept crude oil prices near recent highs as energy markets tracked supply, shipping and inventory data.
Iran’s top joint military command announced the closure of the Strait of Hormuz on Thursday. The order covered oil tankers and commercial ships. The U.S. military said commercial ships continued to move in and out of the waterway. It also denied reports that U.S. warships had been struck near the strait.
Supply route in focus
The Strait of Hormuz remains one of the world’s most important oil and gas shipping routes. The waterway links Gulf producers with global buyers and carries a large share of seaborne energy trade. Oil market attention stayed fixed on the route because any change in vessel movement affects crude supply chains, freight schedules and refinery planning.
U.S. government data also added support to crude prices. The U.S. Energy Information Administration said commercial crude inventories fell by 7.2 million barrels to 426.5 million barrels in the week ended June 5. Analysts had expected a smaller draw of about 4 million barrels. Stocks at the Cushing, Oklahoma, delivery hub fell by 801,000 barrels.
Inventories add pressure
Refinery crude runs rose by 81,000 barrels per day during the week. Utilization rates increased by 0.6 percentage points to 95.3%. Total product supplied, a proxy for demand, rose by 267,000 barrels per day to 20.6 million barrels per day. Gasoline demand increased to 8.73 million barrels per day, while gasoline stocks rose to 215.1 million barrels.
Distillate stockpiles, which include diesel and heating oil, fell by 200,000 barrels to 102.1 million barrels. Net U.S. crude imports rose by 525,000 barrels per day, while exports fell by 1.03 million barrels per day to 4.84 million barrels per day. OPEC output also remained part of the wider supply picture as traders watched Gulf export flows and global crude availability.