Crude Oil Surges Above $100 Amid Strait of Hormuz Instability

Crude oil prices have surged above $100 per barrel, with West Texas Intermediate closing at $102.34 and Brent trading near $115. This increase is driven by geopolitical instability in the Strait of Hormuz and OPEC demand revisions, which have limited the price relief typically expected from the transition to winter-blend gasoline.

GasBuddy and other data providers report that October is expected to be the most expensive October on record for gasoline prices, following record highs in August and September. While the national average for regular gasoline fluctuated between $4.24 and $4.28 per gallon, regional spikes occurred in Colorado, where prices rose 20.9 cents to $4.46, and Northeast Ohio, where prices climbed 33 cents to $4.432. Patrick De Haan of GasBuddy noted that a regional refinery issue in the Great Lakes further contributed to these spikes.

Domestic supply pressures are mounting as the Energy Information Administration reports that crude oil inventories fell 3.1 million barrels to 3% below the five-year average. National diesel prices also saw a modest increase, averaging $6.34 per gallon. De Haan stated that relief for motorists remains elusive heading into the U.S. election, despite state-level fuel tax cuts and federal efforts to lower costs.