DTN Oil Update
Oil Futures Jump 2% on Tighter Supply Outlook
HOUSTON (DTN) -- Oil futures rose more than 2% to close the week higher on Friday, driven by expectations of tighter supplies, despite increased transit through the Strait of Hormuz and an agreement between United States and China that the key global oil and gas shipping waterway must remain open.
The front-month NYMEX WTI futures contract rose $2.44 to $103.61 bbl, while the July ICE Brent futures contract climbed $2.32 to $108.04 bbl.
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Downstream, June RBOB gasoline futures advanced $0.0485 to $3.6542 gallon, the front-month ULSD contract decreased $0.1046 to $4.0102 gallon.
The U.S. Dollar Index strengthened 0.427 points to 99.115 against a basket of currencies.
Iranian media reported that roughly 30 vessels transited the Strait of Hormuz on Thursday, May 14, after Tehran had allowed some Chinese ships to pass through the shipping route.
Global oil supply fell 1.8 million bpd in April to 95.1 million bpd as a result of the Iran conflict and the ongoing closure of the Strait of Hormuz, taking total losses since February to 12.8 million bpd, the International Energy Agency said on Wednesday, May 13.
"Assuming flows through the Strait gradually resume from June, global oil supply is projected to decline by 3.9 million bpd on average in 2026, to 102.2 million bpd," the EIA said.
Separately, U.S. President Donald Trump concluded his three-day visit to China, saying his meeting with Chinese President Xi Jinping resulted in "fantastic trade deals."
The summit took place more than a year after the Trump administration imposed a baseline 10% tariff on most Chinese good imported into the U.S., prompting retaliatory measures from China and escalating trade tensions between both countries.
