A tanker in the Strait of Hormuz caught fire on Monday following a projectile strike, marking the 10th incident reported by the UK Maritime Trade Operations agency since October 1. Despite ongoing regional tensions, Donald Trump stated that the Strait of Hormuz no longer influences US gasoline prices, citing increased global oil production as a factor.
Trump attributed rising fuel costs to refinery issues, specifically mentioning attacks on Russian facilities by Ukraine and domestic refinery closures in California. Data from Kpler indicates that Middle East crude exports reached an average of 18.5 million barrels per day in the week leading up to October 1, exceeding pre-war levels.
Market data shows significant price fluctuations for energy commodities. US crude rose from $66 per barrel in late February to $91.57 by Monday. Brent crude increased from approximately $67 to $104, while wholesale gasoline climbed from $2.30 to $3.20 per gallon. AAA reports the average cost of regular gasoline reached $4.37 per gallon.
The International Energy Agency notes that Russian diesel output declined by nearly 30 percent due to drone strikes on refineries, leading Moscow to ban diesel exports until October 31. In the US, the two closed California refineries previously processed 284,000 barrels per day, representing less than 2 percent of total national capacity.
In response to market conditions, the G7 nations have agreed to release 100 million barrels of emergency oil reserves. These economic developments occur ahead of the midterm elections scheduled for November 3.
