Oil Prices Surge Amid Hormuz Tensions

API Reports Significant Crude Draw Amid Hormuz Tensions

• The American Petroleum Institute (API) reported an 8.1 million barrel draw in U.S. crude oil inventories for the week ending May 1, surpassing analyst expectations of a 2.8 million barrel draw.
• Geopolitical tensions have escalated with the closure of the Strait of Hormuz, impacting global oil supply.
• The U.S. has released 17.5 million barrels from its Strategic Petroleum Reserve to mitigate market disruptions.
• Market predictions show a strong expectation for crude prices to reach $90 by the end of June, reflecting current supply constraints.

The significant crude inventory draw reported by API and geopolitical tensions in the Middle East suggest tighter oil supply conditions, supporting market expectations for crude prices to hit $90 by June’s end.