Saudi Arabia sharply increased oil production in February ahead of U.S. and Israeli strikes on Iran, according to a draft of OPEC’s monthly report seen by Reuters on Wednesday.

April WTI crude oil (CLJ26) on Monday closed up +3.87 (+4.26%), and April RBOB gasoline (RBJ26) closed up +0.0618 (+2.25%).  April WTI crude oil on Monday rallied to a 3.75-year nearest-futures high of $119.48 but then fell back to close at $94.77.

Crude oil and gasoline prices rallied sharply on Monday after Israel, on Saturday, bombed 30 Iranian oil depots.  In addition, Saudi Arabia became the latest Middle East oil producer to curb production as local oil storage facilities near capacity.

Oil prices were up about 8% on Monday, paring gains after hitting their highest since 2022 earlier in the session, as Saudi Arabia and other OPEC members cut supplies due to disruptions from the expanding U.S.-Israeli war with Iran.

Brent futures rose $7.21, or 7.8%, to $99.90 a barrel at 12:42 p.m. EDT (1643 GMT), while U.S. West Texas Intermediate (WTI) crude rose $4.50, or 5.0%, to $95.40.

Gold prices retreated Monday, but traded above their session lows, as an escalation in the U.S.-Israel war with Iran spurred flows into the dollar and oil.

At 08:07 ET (12:07 GMT), Spot gold fell 1.5% to $5,096.51/oz and gold futures fell 1.1% to $5,104.04/oz.

Spot gold had fallen as low as $5,015.23/oz earlier in the day.