DTN Oil Update
WTI at $99 in Volatile Trade After US Hormuz Blockade
SECAUCUS, N.J. (DTN) -- Oil prices closed higher Monday after volatile trade in the high $90 to $100 bbl range as U.S escalation of the Middle East conflict via a blockade of the Strait of Hormuz was offset by efforts by Pakistan to hold another round of talks between the White House and Iran.
NYMEX WTI crude for May delivery settled up $2.51, or 2.6%, at $99.08 bbbl after moving in a $9 range between $96.57 and $105.63.
ICE Brent crude for May finished the day up $4.16, or 4.4%, at $99.36 after a session low of $98.57 and high of $103.87.
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Downstream in gasoline, NYMEX RBOB futures for May delivery closed up by $0.0787 at $ $3.1160 gallon, trading between $3.1007 and $3.2084.
Diesel proxy ULSD's front-month contract rose $0.0725 to $3.8341 gallon after moving from $3.7616 to $3.8600.
The U.S. Dollar Index softened by 0.174 points to 98.265 against a basket of foreign currencies.
Monday's choppy session in oil and product futures came as U.S. forces stationed in the Persian Gulf enforced President Donald Trump's order to block ships sailing in and out of Iranian ports. U.S. maritime officials reported that two tankers were turned away from the Hormuz, including one going to China.
Conflicting reports emerged, however, on transit through the strait, which remains a primary global flashpoint and waterway for some 20 million bpd of petroleum liquids. Trump claimed on his Truth Social platform that 34 ships went through the strait Sunday, April 12, calling it by far the highest since closure started. However, ship-tracking data cited by media reports indicated that the actual number of vessels on the Hormuz Sunday was four. Trump also claimed many ships were heading to the U.S. to load oil available there.
Diplomatic efforts, meanwhile, appeared to be unfolding simultaneously, with a Pakistani official saying work was underway to bring U.S. and Iranian negotiators back to the negotiation table in Islamabad. The Hormuz blockade by the U.S. was a direct response to the breakdown at the weekend in talks in the Pakistani capital between the White House delegation chaired by U.S. Vice President JD Vance and the Iranian team led by Parliament Speaker Mohammad Bagher Qalibaf. The next round of talks in Islamabad could be as early as Thursday, reports said.
The International Energy Agency (IEA), meanwhile, warned on Monday that Middle East energy supply recovery may take as long as two years following extensive damage to regional infrastructure.
IEA executive director Fatih Birol noted that more than 80 oil and gas facilities, including production, terminals and refineries, have been damaged so far in the six-week long conflict. While Birol expressed hope that another oil stockpile release was not needed, he emphasized that the agency stands ready to act, adding that current oil prices do not reflect the severity of the problem.
On the supply front, OPEC reported on Monday that global oil demand growth was expected to hold steady at 1.4 million bpd through 2026. The group, however, cut its second-quarter forecast by 500,000 bpd, citing "transitory weakness" tied to recent Middle East developments.