Crude oil rose to $90.8 per barrel on Thursday, reversing earlier losses after US President Donald Trump said the United States would launch a strong strike against Iran tonight. Trump added that the US would soon seize key elements of Iran’s “oil infrastructure points,” as part of a broader plan to take control of the country’s oil and gas markets and facilities, including Kharg Island, “in the not too distant future.”
At the same time, fresh data pointed to tightening conditions in the global oil market. In the United States, crude inventories, including strategic reserves, fell by 15 million barrels last week and have dropped by more than 70 million barrels over the past five weeks, the largest drawdown since the 1980s. Fuel stocks in Singapore have also declined to their lowest level since 2013. By contrast, Chinese demand for Saudi crude is set to weaken: Chinese buyers are expected to sharply reduce purchases in July, with imports already at their lowest level in eight years.
