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Yahoo
15 hours ago
- Business
- Yahoo
Oil Prices Climb for Third Straight Week
Crude oil prices were set for another weekly gain today, the third in a row, as Israel and Iran continued to bomb each other with no sign of willingness on either side to switch to diplomacy. At the time of writing, Brent crude was trading at $77.04 per barrel, with West Texas Intermediate at $75.67 per barrel as the latest war in the Middle East entered its second week. The benchmarks dipped slightly from Thursday. The hostilities have pushed tanker rates sky high, along with vessel insurance, with many shippers choosing to avoid the Strait of Hormuz altogether, not least because the deployment of electronic interference warfare that scrambles the navigational systems of ships, increasing the risk of an accident. This is the biggest physical-market driver of the oil price rally, with the potential risk for supply disruption still only potential. Indeed, earlier this week, prices retreated as traders changed their bets on the absence of any attacks on Iranian oil infrastructure of Iranian moves to close the Strait of Hormuz. 'Oil prices remain high due to doubled tanker rates and ships avoiding the Strait of Hormuz,' Price Futures Group analyst Phil Flynn told Reuters. 'The risk to supply is keeping them on edge while there have been no major disruptions of Iranian exports,' he added. ING estimated earlier this week that oil flow disruption in the Strait of Hormuz could push Brent crude to $120 per barrel. 'OPEC's spare capacity would not help the market in this case, as most of it is located in the Persian Gulf. Under this scenario, we would need to see governments tap into their strategic petroleum reserves, although this would only be a temporary fix,' the bank wrote. Meanwhile, the prospects of the United States joining Israel in pounding Iran remain unclear as President Trump avoided giving a categorical answer, saying the decision on that would be made within the next two weeks. U.S. involvement in the war would quite likely push oil even higher. By Irina Slav for More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Arab News
16 hours ago
- Business
- Arab News
Oil Updates — Brent futures down nearly $2 after US delays decision on direct Iran involvement
SINGAPORE: Brent crude prices pared gains from the previous session and fell nearly $2 on Friday after the White House delayed a decision on US involvement in the Israel-Iran conflict, but they were still poised for a third straight week in the black. Brent crude futures fell $1.89, or 2.4 percent, to $76.96 a barrel by 5:55 a.m. Saudi time. On a weekly basis, it was up 3.8 percent. The US West Texas Intermediate crude for July — which did not settle on Thursday as it was a US holiday and expires on Friday — was up 53 cents, or 0.7 percent, to $75.67. The more liquid WTI for August rose 0.2 percent, or 17 cents to $73.67. Prices jumped almost 3 percent on Thursday as Israel bombed nuclear targets in Iran, and Iran fired missiles and drones at Israel after hitting an Israeli hospital overnight. The week-old war between Israel and Iran showed no signs of either side backing down. Brent futures trimmed previous session gains following the White House's comments that President Donald Trump will decide whether the US will get involved in the Israel-Iran conflict in the next two weeks. 'Oil prices surged amid fears of increased US involvement in Israel's conflict with Iran. However, the White House press secretary later suggested there was still time for de-escalation,' said Phil Flynn, analyst at the Price Futures Group. Iran is the third-largest producer among members of the Organization of the Petroleum Exporting Countries, extracting about 3.3 million barrels per day of crude oil. About 18 million to 21 million bpd of oil and oil products move through the Strait of Hormuz along Iran's southern coast, and there is widespread concern the fighting could disrupt trade flows in a blow to supplies. 'The 'two-week deadline' is a tactic Trump has used in other key decisions. Often these deadlines expire without concrete action, ... which would see the crude oil price remain elevated and potentially build on recent gains,' said Tony Sycamore, analyst at IG.
Business Recorder
21 hours ago
- Business
- Business Recorder
Oil prices jump
CALGARY: Oil prices rose on Thursday after Israel and Iran continued to exchange missile attacks overnight and US President Donald Trump's stance on the conflict kept investors on edge. Brent crude futures rose $1.60, or 2.1%, to $78.29 a barrel by 1030 ET. US West Texas Intermediate crude for July was up $1.64, or 2.1%, at $78.34. Brent had surged to its highest in nearly five months at $78.50 on June 13, when Israel began its attacks. Trading volumes were light on Thursday due to a US federal holiday. The conflict entered its seventh day on Thursday after Israel struck Iranian nuclear sites and Iranian missiles hit an Israeli hospital. There is still a 'healthy risk premium baked into the price as traders wait to see whether the next stage of the Israel-Iran conflict is a US strike or peace talks', said Tony Sycamore, analyst at trading platform IG. Goldman Sachs said on Wednesday that a geopolitical risk premium of about $10 a barrel is justified, given lower Iranian supply and risk of wider disruption that could push Brent crude above $90. Even if Middle East tensions were to cool off in the coming days, oil prices are probably not headed back to the low-$60 range they were trading at a month ago, said Phil Flynn, senior analyst for the Price Futures Group. 'I think this (conflict) knocks oil out of its complacency,' said Flynn. 'I would argue that the market has been underplaying geopolitical risk.' President Trump told reporters on Wednesday that he had yet to decide whether the US will join Israel in its attacks on Iran. As a result of the unpredictability that has long characterised Trump's foreign policy, 'markets remain jittery, awaiting firmer signals that could influence global oil supply and regional stability' said Priyanka Sachdeva, analyst at Phillip Nova. The risk of major energy disruption will rise if Iran feels existentially threatened, and US entry into the conflict could trigger direct attacks on tankers and energy infrastructure, said RBC Capital analyst Helima Croft. Iran is the third-largest producer among members of the Organization of the Petroleum Exporting Countries, extracting about 3.3 million barrels per day (bpd) of crude oil. About 18 million to 21 million bpd of oil and oil products move through the Strait of Hormuz along Iran's southern coast and there is widespread concern the fighting could disrupt trade flows.
Business Recorder
2 days ago
- Business
- Business Recorder
Oil falls as Iran-Israel conflict enters sixth day
NEW YORK: Oil prices fell nearly 2% on Wednesday after gaining earlier in the session as investors weighed the chance of supply disruptions from the Iran-Israel conflict and potential direct US involvement. Brent crude futures fell $1.40, or 1.8%, to $76.73 a barrel by 10:41 a.m. EDT. US West Texas Intermediate crude dropped $1.29, or 1.7%, at $73.55. Both contracts had gained over 4% the previous session. Prices turned negative after President Donald Trump on Wednesday declined to answer reporters' questions on whether the US was planning to strike Iran or its nuclear facilities, and said the Iranians had reached out but he feels 'it's very late to be talking'. Trump said Iran had proposed to come for talks at the White House but did not provide details. 'He's basically suggesting that Iran could say, 'Alright, we're going to shut down our nuclear program',' said Phil Flynn, senior analyst with the Price Futures Group. 'That would avoid the US getting into a conflict. That would be reduction of risk.' On Tuesday, Trump warned that US patience was wearing thin and called for an 'unconditional surrender' from Iran, an option that Iran's leader Ayatollah Ali Khamenei rejected on Wednesday. While Trump said there was no intention to kill Khamenei 'for now', his comments had suggested a tougher stance towards Iran as he considers whether to increase US involvement. A source familiar with internal discussions said one of the options Trump and his team were considering included joining Israel in strikes against Iranian nuclear sites. HIGHER RISK Direct US involvement threatens to widen the conflict, putting energy infrastructure in the region at higher risk of attack, analysts say. 'The biggest fear for the oil market is the shutdown of the Strait of Hormuz,' ING analysts said in a note. 'Almost a third of global seaborne oil trade moves through this chokepoint. A significant disruption to these flows would be enough to push prices to $120 (a barrel).' Iran is OPEC's third-largest producer, extracting about 3.3 million barrels per day (bpd) of crude oil. Meanwhile, Iran's ambassador to the United Nations in Geneva said on Wednesday that Tehran has conveyed to Washington that it will respond firmly to the United States if it becomes directly involved in Israel's military campaign. Markets are also awaiting news from a second day of US Federal Reserve discussions on Wednesday, in which the central bank is expected to leave its benchmark overnight interest rate in the range of 4.25% to 4.50%. However, the Middle East conflict and risk of slowing global growth could push the Fed to cut rates by 25 basis points in July, sooner than current expectations of September, said Tony Sycamore, market analyst at trading platform IG. Lower interest rates generally boost economic growth and demand for oil. Complicating the decision for the Fed, however, is the Middle East conflict's potential creation of a new source of inflation via surging oil prices. In US supply, crude stocks fell by 11.5 million barrels to 420.9 million barrels last week, the Energy Information Administration said on Wednesday. Analysts had expected a 1.8 million-barrel draw.
Business Times
3 days ago
- Business
- Business Times
Oil prices rise more than 4% as Iran-Israel conflict escalates
[HOUSTON] Oil prices climbed over 4 per cent on Tuesday (Jun 17) as the Iran-Israel conflict raged with no end in sight, though major oil and gas infrastructure and flows have so far been spared from substantial impact. Brent crude futures settled at US$76.45 a barrel, US$3.22, or 4.4 per cent. US West Texas Intermediate crude finished at US$74.84 a barrel, up US$3.07 or 4.28 per cent. While there was no noticeable interruption to oil flows, Iran partially suspended gas production at the South Pars field it shares with Qatar after an Israeli strike started a fire there on Saturday. Israel also hit the Shahran oil depot in Iran. The continuing exchange of airstrikes between Israel and Iran returned geopolitical risk to oil markets already aware of a tight supply and demand balance, said Phil Flynn, senior analyst with the Price Futures Group. 'This is not a one-and-done; it's probably much more similar to Russia and Ukraine,' Flynn said. A collision of two oil tankers near the Strait of Hormuz, where electronic interference has increased during the conflict, highlighted the possibility that the vital waterway for oil shipments could be cut off. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'The market is largely worried about disruption through (the Strait of) Hormuz, but the risk of that is very low,' said Saxo Bank analyst Ole Hansen. There is no appetite for closing the waterway, given that Iran would lose revenue and the US wants lower oil prices and lower inflation, Hansen added. Uncertainty led market participants on Tuesday to wonder how Iran's leadership would react if they thought they were losing their grip on power, said John Kilduff, partner at Again Capital. 'We're talking a security premium upwards of US$10 a barrel that's now built into the price,' Kilduff said. Despite the potential for disruption, there were signs oil supplies remain ample amid expectations of lower demand. In its monthly oil report on Tuesday, the International Energy Agency revised its world oil demand estimate downwards by 20,000 barrels per day (bpd) from last month's forecast and increased the supply estimate by 200,000 bpd to 1.8 million bpd. Investors were also focused on central bank interest rate decisions, PVM Associates analyst Tamas Varga said in a note, with the US Federal Open Market Committee set to discuss rates later on Tuesday. REUTERS
