Azernews.Az

Ulviyya Poladova

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U.S. crude oil inventories declined by 9.1 million barrels last week, AzerNEWS reports, citing Reuters.

According to data from the American Petroleum Institute (API), it represents the largest weekly drop in reserves since September. U.S. oil inventories are now at their lowest level in the past four months.

Meanwhile, global oil prices have edged lower. On London’s ICE (InterContinental Exchange Futures), Brent crude fell by $0.14 per barrel to $91.31. In New York’s NYMEX (New York Mercantile Exchange), West Texas Intermediate (WTI) crude declined by $0.13 per barrel to $88.07.

Rising tensions in the Middle East, particularly in the Strait of Hormuz, a vital global oil shipping route, continue to raise concerns. The region has seen heightened geopolitical risks following recent military incidents, which have raised concerns about potential disruptions to oil shipments.

The Strait of Hormuz is a narrow maritime passage between the Persian Gulf and the Gulf of Oman, holding significant strategic importance as approximately 20% of global oil supplies and around 25% of liquefied natural gas (LNG) exports pass through it. Essentially, it serves as an energy artery for countries in Asia, Europe, and even the United States.

The strait separates Iran from Oman, and in some areas, the width of the shipping channel is only two miles on each side. Given its critical role in global energy supply chains, ensuring the safety and security of this vital waterway is paramount for international trade and economic stability.