Petroleum futures were still showing strong gains Friday even as they had backed off earlier highs following Israel’s strike on Iranian targets Thursday.
The gains, coupled with strength seen earlier in the week, mean crude oil, RBOB and ULSD contracts are all on track to end the week substantially higher.
U.S. crude prices were up about 6.25% at 11:30 a.m. EDT Friday, with the July West Texas Intermediate crude contract climbing $4.25 to $72.29/bbl while August prices were ahead by $3.88 to $70.52/bbl.
WTI prices had shot up by 14% in the initial wake of the attack.
Brent crude was seeing gains of 5.8% with the August contract moving up by $4 to $73.36/bbl and September prices gaining $3.53 to $71.97/bbl.
Most activity in WTI and refined products was focused on the next-month contracts on Friday.
ULSD futures were up by about 6%, with July prices gaining 13.02cts while August prices moved 12.7cts higher.
RBOB gains were in the neighborhood of 3.75%, with front-month prices rising by 7.86cts to $2.2215/gal and August prices up 7.96cts to $2.2067/gal.
Prices have been shooting higher after Israel attacked Iranian nuclear and military facilities last night, raising the possibility of Iranian oil being kept from global markets and Iran attempting to block ship traffic in the Strait of Hormuz, where about a third of global oil supplies are transported.
The rise in refined product futures prices was mirrored in spot markets around the country, as cash gasoline and diesel prices were seeing similar gains.
While markets are reacting in the immediate aftermath of the strike, financial analysts don’t expect the gains to remain in place moving forward.
In a note Friday morning, Citigroup analysts said that heightened geopolitical tensions may remain in place, but energy flow disruptions are expected to be limited.
In its analysis, Rystad Energy said the near-term impact on energy prices depends on Iran’s response to the Israeli attack.
“If Iran’s retaliation is limited, focusing only on Israeli military sites, as seen in past episodes, price increases may remain contained and temporary,” Rystad said. “But if Iran escalates by disrupting oil flows through the Strait of Hormuz, attacking regional energy infrastructure, or targeting US military assets, prices could spike much more sharply.”
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
— Reporting by Steve Cronin, [email protected]; Editing by Michael Kelly, [email protected]
(END) Dow Jones Newswires
06-13-25 1242ET
