DTN Oil Update
Oil, Fuel Tumble in Volatile Moves; US Cites Iran Talks
SECAUCUS, N.J. (DTN) -- Crude oil futures fell as much as 15% from Monday's session highs, driving refined product prices lower as well, after U.S. President Donald Trump said White House-appointed representatives were in talks with an Iranian official to find a resolution to the Middle East conflict.
By 12:35 p.m. EDT, WTI for May delivery was down $7.15, or 7.3%, to $91.08 barrel (bbl). It tumbled to a session low of $84.37 from an intraday high of $101.67 earlier.
The ICE Brent contract for May showed a decline of $8.71, or 7.8%, to $103.48 bbl. The low for the day was $96 versus the high of $114.43.
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ULSD futures for April delivery declined $0.2986 to trade at $4.3098 gallon, after a session low of $4.0107 and high of $4.8353.
Front-month RBOB futures retreated by $0.2321 to $3.0541 gallon. The bottom for the day was $2.8972 versus the high at 3.2862.
The U.S. Dollar Index softened by 0.374 points to 99.085 against a basket of foreign currencies.
Prices retraced from their lows after Iran's Parliament Speaker Mohammad-Bagher Ghalibaf, speaking through state media, denied there had been any talks with U.S. negotiators. Israel, ally to the U.S. military campaign against Iran, earlier identified Ghalibaf as the official in talks with White House-appointed negotiators.
Notwithstanding any U.S.-Iran talks, Israel's military said Monday it was continuing with strikes in the heart of Tehran. Separately, Iran said it will defend itself from further attacks.
Since the conflict began three weeks ago, Iran has stepped up attacks on neighboring energy installations, particularly after an airstrike on its largest natural gas field by Israel last Wednesday.
The International Energy Agency said more than 40 energy assets across nine countries in the Middle East have been severely damaged by the war.
Trump told reporters earlier on Monday the U.S. would give a five-day grace period for the talks to work. "We've had very, very strong talks. We'll see where they lead. We've had major points of agreement."
Trump's announcement of the five-day grace period effectively postpones attacks on Iran's power plants that he had threatened at the weekend should Iran not reopen the blockaded Strait of Hormuz -- the Middle East's most critical waterway for oil -- in 48 hours.