Crude oil prices rallied on Wednesday, rebounding from a seven-week low touched in the previous session, after the US military launched new strikes against Iran. A large drop in US crude stocks also supported the oil prices.
Brent futures rose 0.42% to $91.83 a barrel, while US West Texas Intermediate (WTI) crude gained 0.36% to $88.52 a barrel.
Brent oil prices had settled at its lowest on Tuesday since April 17, while WTI had closed down at its weakest since May 29.
The US military launched airstrikes on Iran following the downing of a US Apache attack helicopter overnight near the Strait of Hormuz that President Donald Trump blamed on the Islamic Republic. Tehran vowed to respond, in a fresh escalation that threatens to unravel a fragile ceasefire between Washington and Tehran.
At the same time, Tehran has continued to block most shipping through the Strait of Hormuz, which normally carries a fifth of the world’s crude oil and liquefied natural gas. Washington has imposed its own blockade of Iranian ports.
US Crude Inventories
US crude oil inventories fell last week for an eighth consecutive week, while gasoline stocks also declined, Reuters reported, quoting market sources citing data from the American Petroleum Institute.
Crude stocks fell by 9.12 million barrels in the week ended June 5, while gasoline inventories fell by 1.19 million barrels, the report said.
Lower US inventories could hurt exports and push up crude oil prices.
(With inputs from Agencies)
