Crude Surges Past $99 on Hormuz Tanker Transit, Falling Inventories

U.S. crude oil prices surged past $99 per barrel Tuesday, driven by signs of easing tensions in the Strait of Hormuz and another substantial draw in domestic inventories. West Texas Intermediate (WTI) crude settled at $99.61, a gain of $3.24 or 3.36%, according to live price data. The global benchmark, Brent crude, rose 2.45% to $104.18.

The price rally was fueled by ship-tracking data showing the first loaded crude supertanker cleared the critical Hormuz chokepoint since the Iran conflict began two months ago. According to OilPrice.com, the Idemitsu Maru, operated by a Japanese company, exited the waterway without using the contested Larak Channel. This follows the recent transit of a loaded LNG tanker, signaling a potential pathway for de-escalation and improved Gulf energy flows, though activity remains depressed.

Simultaneously, U.S. oil inventories continued to decline. Data from the American Petroleum Institute (API) estimated a crude stock draw of 1.79 million barrels for the week ending April 24, defying analyst expectations of a build. Product inventories saw even steeper draws, with gasoline falling by 8.47 million barrels and distillates down 2.6 million barrels. Stocks at the Cushing, Oklahoma hub—the delivery point for WTI—fell by 820,000 barrels.

For Bakken operators, the rising price environment is tempered by the region's differential. Bakken crude traded at a discount of $3.42 per barrel below WTI on Tuesday. The strong WTI price, however, directly boosts netback revenue. The combination of higher benchmarks and tightening inventories, with Cushing stocks falling, supports the fundamental pricing structure for light sweet crude produced in the Williston Basin.

The inventory report also highlighted ongoing draws from the U.S. Strategic Petroleum Reserve (SPR), with 7.1 million barrels released last week, bringing the total to 397.9 million barrels. U.S. production was reported at 13.585 million barrels per day for the week ending April 17, a slight decrease from the prior week but still up 125,000 bpd year-over-year.

The day's movements underscore the market's acute sensitivity to both geopolitical supply risks and tangible inventory data. While the tanker transits offer hope for stabilized Middle Eastern exports, the sustained draws from commercial and strategic stockpiles continue to underline a tight physical market.