DTN Oil Update
Oil Edges Up Amid Heightened Global Conflicts
SECAUCUS, N.J. (DTN) -- Crude futures rose for a second straight session on Tuesday, Dec. 30, supported by global geopolitical tensions, despite a slight build on U.S. inventories last week.
Russia attacked infrastructure in Ukraine's Odesa region on Tuesday, damaging a civilian ship and facilities in the Black Sea ports of Pivdennyi and Chornomorsk, according to media reports.
In the last 48 hours, mutual attacks by Russia and Ukraine mutual attacks have overshadowed the possibility of a peace deal, which -- for now -- would keep intact sanctions on Russian oil in an oversupplied market.
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In the Middle East, Saudi Arabia launched airstrikes over Yemen, saying its national security was threatened by foreign military support for UAE-backed southern separatists. A Saudi-led coalition previously engaged in a years-long war against Houthi rebels in Yemen that began in 2015 before shifting towards internal southern fractures.
Oil traders were also keeping watch on other Middle East developments after U.S. President Donald Trump said the United States could support another major strike on Iran were Tehran to resume rebuilding its ballistic missile or nuclear weapons programs.
"Just as the year is about to end, oil markets are violently repricing geopolitics," noted Phil Davis, founder of PSW Investments in Boynton Beach, Florida.
U.S. oil inventories, meanwhile, rose modestly for last week, according to a Christmas-delayed report from the Energy Information Administration on Tuesday that showed stocks rising by 400,000 bbl to 424.8 million bbl during the week ended Dec. 19, following a 1.3 million barrel decrease the prior week.
The NYMEX WTI futures contract for February delivery climbed by $0.28 to $58.36 bbl, extending Monday's 2.4% increase.
The front-month ICE Brent futures contract rose by $0.22 to $62.16 bbl after the prior session's climb of 2%.
So far this year, NYMEX WTI crude has dropped by18%, while Brent has fallen 17%.
NYMEX ULSD futures contract for January shipments rose by $0.0250 to $2.1525 gallon.
The front-month RBOB contract edged up $0.0020 to $1.7172 gallon.
The U.S. Dollar Index rose by 0.068 points to 97.8 against a basket of foreign currencies.