November WTI crude oil (CLX26) closed up +1.64 (+1.81%) on Wednesday, and November RBOB gasoline (RBX26) closed up +0.1183 (+3.67%).
Crude oil and gasoline prices rallied sharply on Wednesday, with gasoline posting a 4-month high. Crude prices erased overnight losses and moved sharply higher as the end to US-Iran hostilities remains elusive, impeding crude flows through the Strait of Hormuz. Wednesday’s weekly EIA inventory report was bearish for crude but bullish for gasoline as crude supplies unexpectedly rose, while gasoline stockpiles unexpectedly declined. Gains in crude were limited on Wednesday after the dollar index ($DXY) rallied to a 1.75-month high.