Oil Moves Higher on Rekindled War Fears
What I Cover Irina Slav has been writing about global energy markets since 2007, covering the oil and gas industry, energy security, commodities, and the… Crude oil prices started the week with a jump after President Trump rejected a peace deal proposal tabled by Iran last week at the UN General Assembly.
At the time of writing,Brent crudewas trading at $107.24 per barrel, withWest Texas Intermediateat $94.10 per barrel, the latter pressured by news that the U.S.
federal government may institute a temporary ban on diesel, which would force refiners to cut run rates, boosting the availability of crude oil.
Interestingly, a fresh report about improving oil flows out of the Persian Gulf failed to offset fears of continued war in the region.
Normally, such news would pressure oil prices immediately and keep them pressured, as evidenced by developments since March.
This time, it seems war-related concerns are taking the upper hand.
The Wall Street Journalreportedthis weekend that president Trump was considering a resumption in military strikes on Iran once the November midterms are over, strengthening the prospect of a prolonged war.
This would in turn prolong the disruption on normal oil trade.
and Iran appear to be stuck on their mutual conditions for peace.
Iran has conditioned its agreement to a deal—and the reopening of Hormuz—on the U.S.
lifting its naval blockade and oil sanctions, and unfreezing Iranian funds.
The U.S., on the other hand, appears to believe economic pressure would eventually break Iran and has rejected the idea of lifting either the naval blockade or the earlier sanctions.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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