DTN Oil Update
Oil Hits Biggest Monthly Hike in 2 1/2 Years in January
SECAUCUS, N.J. (DTN) -- Crude futures dipped Friday, Jan. 30, but posted their highest monthly hike in 2-1/2 years, supported by concerns over near-term oil supply, after the United States took over the Venezuelan oil industry and threatened military action against Iran.
On Jan. 3, U.S. military forces captured Venezuelan President Nicolas Maduro and assumed control of the country's oil industry, which produced 896,000 bpd in December.
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In the weeks thereafter, as mass civilian protests rocked Iran, Washington threatened Iran with military strikes. As on Friday, an armada of U.S. warships were deployed in Middle East waters as U.S. President Donald Trump pressed Iran -- OPEC's fourth largest producer with a 3.2 million bpd output -- to enter nuclear disarmament talks.
The two events, along with a major snowstorm last week that disrupted output in the Permian Basin in Texas and the Williston Basin in North Dakota, covering an area with combined production of 2 million bpd, sent crude futures spiraling.
The U.S. dollar's tumble to a four-year low against a basket of currencies also boosted prices of crude and other energy products denominated in the greenback.
On Friday, the U.S. Dollar Index rose 0.768 points to 96.905 against a basket of currencies, after a four-year low of 95.52 earlier in the week.
NYMEX WTI futures for March delivery settled the final session of the month down $0.21, or 0.3%, at $65.21 bbl on light profit-taking, after hitting a five-month high of $66.48 in the prior session. The contract rose 7% for the week and jumped 14% in January, its biggest monthly rise since July 2023, when it advanced 16%.
The ICE Brent contract for March settled down $0.02, or 0.03%, at $70.69. For the week, it rose 6% while for the month, it climbed 15%.
Among refined products, ULSD for March delivery was up $0.0618, or 2.5%, at $2.5456 gallon. For the week, it rose 5% and for the month advanced by 20%.
The gasoline contract for March rose $0.0158, or 0.7%, to $1.9511 gallon. It rose 5.5% on the week and 14% in the month.