FX.co ★ Crude Oil Rebounds on Friday

Crude oil edged toward $92 per barrel on Friday, extending the prior session’s gains as mounting supply risks offset short-lived relief over signs that the US would not escalate its conflict with Iran this month. Freight costs for tankers traversing the Persian Gulf jumped to record highs, while traffic through the Strait of Hormuz slowed after maritime agencies reported a series of attacks on vessels in the area. Persistent unrest across the Middle East continued to disrupt OPEC+ production, constraining crude shipments to major refining hubs. Heightening supply concerns, recent EIA data showed the US Strategic Petroleum Reserve had fallen to near-record lows. At the same time, Hurricane Isaias forced operators in the Gulf of Mexico to shut in more than 60% of regional crude output capacity. Together, these disruptions outweighed the brief price pullback that followed US President Trump’s indication that Iran would not be targeted with strikes before the November 3rd midterm elections.