DTN Oil Update
Oil Futures Post 6% Weekly Loss on Middle East Easing
HOUSTON (DTN) -- Crude oil prices posted a weekly loss of about 6% on Friday, falling to their lowest level in nearly three months as expectations of easing tensions in the Middle East grew after U.S. President Donald Trump canceled planned retaliatory airstrikes on Iran a day earlier.
Despite the easing of tensions in the Middle East, the four-month-long Iran war continues to disrupt global oil markets severely. Blockades imposed by both Iran and the United States at opposite ends of the Strait of Hormuz have restricted the flow of roughly 20 million bpd of petroleum liquids, creating one of the most significant supply disruptions in recent history.
A bearish tone dominated the oil futures market as media reports stated that a peace deal could be signed as early as Sunday.
The NYMEX WTI crude futures contract for July delivery fell $2.83 to $84.88 bbl, after a session low at $83.20. This was the lowest level since April 21, when it settled at $83.94, DTN data showed. ICE Brent for August slid $3.05 to $87.33 bbl after tumbling to $85.80 bbl earlier. It was also the lowest price recorded since April 20, when it reached $87.20 bbl.
Downstream, the July NYMEX ULSD futures contract dropped $0.1127 to $3.4004 gallon, while the front-month NYMEX RBOB futures contract declined $0.0572 to $3.0442 gallon.
The U.S. Dollar Index dropped 0.94 points to 99.75 against a basket of foreign currencies.
Meanwhile, Baker Hughes reported Friday that North American energy drilling activity increased by 10 rigs during the week ended June 12, bringing the total regional rig count to 742, compared to 732 a week earlier. This week's rig changes were driven entirely by gains in Canada, which saw an 11-rig increase, offsetting a one-rig decline in the U.S.
In the U.S., oil rigs increased by 2 to 433. Conversely, the gas rig count dropped by three to 121, and miscellaneous rigs remained unchanged at eight.
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