United States Oil Fund Soars 12.9% After Gulf Supply Shock
United States Oil Fund rose 12.9% on Friday after crude oil spiked 35% in a week to above $90 a barrel following drone strikes on Saudi fields and closure of the Strait of Hormuz. Saudi Arabia, Kuwait and Iraq have cut output as storage nears capacity, fueling the rally.
1. Supply Shock Sends Oil Above $90
Crude oil prices surged 35% in a week to above $90 per barrel as the Strait of Hormuz was effectively closed and drone strikes on Gulf facilities sent a shock through global markets.
2. Attacks on Major Saudi Fields
Saudi Aramco’s Berri field (250,000 bpd) suffered minor debris damage while the 1 million bpd Shaybah field and 550,000 bpd Ras Tanura refinery endured drone attacks, prompting force majeure declarations across regional producers.
3. Closure of Hormuz Disrupts Exports
Tanker traffic through the Strait of Hormuz plunged from about 60 vessels daily to near zero, pushing onshore storage at Kuwait, Saudi Arabia and the UAE toward capacity and driving preemptive production cuts.
4. ETFs Rally on Supply Crunch
United States Oil Fund jumped 12.94% on Friday while peer ETF Invesco DB Oil Fund rose 8.24% as markets brace for a potential 4.7 million bpd output loss among Iraq and Kuwait by day 18 of the blockade.