Oil News: Crude Oil Momentum Builds as Middle East Supply Math Gets Worse
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Key Points:
- WTI breaks $100 as tanker attacks spread across Hormuz and the Red Sea, raising risks to Middle East exports.
- Middle East oil shut-ins hit 6.7 million bpd as expanding conflict keeps pressure on global crude supply.
- OPEC output fell 640,000 bpd in August, strengthening the bullish supply case despite weaker oil demand.
The conflict stopped being about one shipping lane Thursday. Iran attacked 10 ships near the Strait of Hormuz. Washington struck five Iranian oil tankers. The Houthis seized a Yemeni port on the Red Sea. Middle East production shut-ins jumped to 6.7 million barrels per day in August. OPEC lost 640,000 barrels per day of output the same month. Chinese refiners started buying again after months away. Every piece of the supply picture got worse on the same session.