DTN Oil Update
Oil Rises as Iranian Oil Exports Plummet
VIENNA (DTN) -- Oil futures rose Tuesday morning as reciprocal strikes between Iran and Israel continued, with Iranian oil exports having nearly grinded to a halt.
NYMEX-traded WTI for July rose $0.91 barrel (bbl) to trade near $72.68 bbl, and ICE Brent for August delivery gained $1.12 bbl to $74.35 bbl.
July RBOB gasoline futures added $0.0300 to $2.2499 gallon, and the front-month ULSD futures contract advanced $0.0598 to trade near $2.4531 gallon.
The U.S. Dollar Index strengthened by 0.203 points to 97.755.
According to reports and vessel tracking data, no tankers have loaded at Kharg Island, Iran's main crude oil export hub, since Friday. Since then, exports have clocked in at only 100,000 barrels per day (bpd), compared to average exports of 1.7 million bpd so far this year, a Reuters report citing Kpler data showed.
Israeli forces on Saturday struck the South Pars gas field, leading to a partial halt of operations. The field, the source of a majority of Iranian natural gas, also produces some 700,000 bpd of condensate. At least one refinery and several fuel storage tanks have also recorded damages.
Non-Iranian oil flows may also soon slow down, given growing security risks to shipping in the region. On Tuesday, two oil tankers collided in the Strait of Hormuz, likely a result of electronic signal interference.
Karim Bastati can be reached at Karim.Bastati@dtn.com
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