DTN Oil Update

Barani Krishnan
DTN Refined Fuels Market Reporter

SECAUCUS, N.J. (DTN) -- Global energy markets rose Monday on signs that oil and gas shipments were being squeezed again on the Strait of Hormuz amid fresh U.S.-Iran hostilities that raised questions about the interim peace pact between the two.

After multiple weeks of price tumbles that sent crude futures to four-month lows, higher risks in the Persian Gulf in recent days has reintroduced volatility into markets tracking the progress of talks in Doha that both peace negotiators and mediators hope will bring a permanent end to this year's Middle East conflict.

NYMEX WTI for August delivery rose $1.52 to settle at $70.75 bbl, for a 2.2% advance on the day versus Friday's 3.7 drop and the cumulative prior three-week tumble of 24%.

ICE Brent for August climbed $1.16 to close at $73.15 bbl. In the prior session. August Brent fell 3.8% in the prior session, culminating in a six-week slide of 33%.

Downstream, NYMEX ULSD futures for August delivery rose by $0.1235 to finish at $3.3317 gallon while August RBOB climbed by $0.1043 to end the session at $ 3.0614 gallon.

The U.S. Dollar Index softened by 0.267 points to 100.86 against a basket of foreign currencies.

Vessel traffic through the Strait of Hormuz slowed following Saturday's Iranian attack on a laden tanker, though regional export loadings managed to continue. The U.S. military retaliated with targeted strikes against Iranian missile launch sites over the weekend. Following a subsequent exchange of fire on Sunday, both nations agreed to a temporary pause while trading blame for the ceasefire breach.

Media reports of ship tracking data showed just 22 vessels transiting the Hormuz on Sunday, down from 38 on Saturday. This represents a steep drop from the 78 daily transits recorded late last week before the latest Iran-U.S. hostilities. Surging maritime insurance premiums and lingering mine risks also keep traffic well below pre-war baselines.