Crude oil prices are climbing toward $100+ per barrel as global inventory drawdowns accelerate and China resumes significant crude purchases. Shipping disruptions in the Middle East from Houthi threats and tanker attacks are constraining supply, while Energy Aspects analyst Amrita Sen warns the market has reached an inflection point heading for higher prices.
Hedge funds are shifting to bullish positions on U.S. fuels as a supply squeeze deepens, driven by Middle East and Russia disruptions, fewer refineries, and record-high diesel prices exceeding $5.90 per gallon. Speculators now hold a net long position of 177 million barrels across gasoline and diesel contracts, with inventories at critical levels and refinery maintenance season approaching.