DTN Oil Update
Oil Up 4th Day in Row as Mideast on Edge Despite Ceasefire
SECAUCUS, N.J. (DTN) -- Oil futures rose a fourth consecutive session on Thursday on mounting tensions in the Middle East as Israel and Iran announced readiness to resume their near two-month war, while the U.S. continued to push for a peace deal that could free blocked shipping lanes holding up a fifth of world energy supply.
The Israeli military was poised for renewed combat with Iran, Defense Minister Israel Katz said, warning of "different, lethal attacks" if fighting resumes.
Iranian media reported local air defenses were already engaging with hostile targets in parts of Tehran as its leaders rejected U.S. President Donald Trump's peace overtures while the White House maintained a blockade on Iran's maritime trade.
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Since the start of this week, Iran has signaled no compromise over its grip on the Strait of Hormuz, following the U.S. navy's blockade of all ships entering and exiting Iranian ports.
Iranian state television broadcast footage from Wednesday of masked troops boarding two international vessels seized for crossing the Hormuz without its permission. That seizure appeared to be in response to the U.S. capture of an Iranian tanker oil tanker on Tuesday.
Before the current Middle East conflict that began at the end of February, some 140 ships traversed the Hormuz daily, carrying an estimated 20 million barrels per day (bpd) of petroleum liquids that accounted for 20% of global energy supplies.
Trump said Thursday he has ordered the U.S. navy to "shoot and kill" any vessel seen attempting to lay new mines in the Hormuz, which according to reports, may require up to six months to be cleared of mines already laid. The president claimed the U.S. had complete control over Iran's maritime trade, with the U.S. armed forces reporting 33 vessels had been stopped so far from gaining to access to Iranian ports. Tehran countered that four Iranian vessels had evaded U.S. detection over the past two days.
U.S. petroleum exports appeared to be the major beneficiary of the Hormuz blockade, with the Energy Information Administration reporting a record high shipment of 8.08 million bpd of oil product shipments from the United States during the week ended April 17 as refiners and consumers worldwide scrambled to replace lost Middle Eastern supply.
At Thursday's close, NYMEX WTI crude for June delivery settled up $2.89, or 3%, at $95.85 bbl. Week-to-date, WTI was up almost 15%, offsetting last week's 13% tumble.
Brent crude for June finished up $3.16, or 3%, at $105.07 barrel (bbl) on ICE. The global crude benchmark is up 16% on the week, after the prior week's 5% slide.
Among refined products, diesel proxy ULSD ended May trading on NYMEX up $0.0503 at $3.9882 gallon. In gasoline, NYMEX RBOB for May closed up $0.1042 at $3.4621 gallon.
The U.S. Dollar Index rose 0.218 points to 98.63 against a basket of foreign currencies by 3.20 p.m. ET.