DTN Oil Update
Oil Set for Weekly Gain as Iran Friction Snaps 2-Week Loss
VIENNA (DTN) -- Crude oil futures edged lower Friday morning, extending Thursday's decline sparked by growing expectations of a diplomatic settlement to the U.S.-Iran war.
By 8:15 a.m. EDT, ICE Brent for August delivery was down $0.11 to trade near $94.92 bbl, and NYMEX WTI for July delivery fell $0.29 to $92.75 bbl.
Downstream, NYMEX ULSD futures for July delivery edged higher by $0.0049 to $3.6787 gallon, and front-month NYMEX RBOB futures advanced $0.0360 to $3.0743 gallon.
The U.S. Dollar Index softened by 0.2 points to 99.18 against a basket of foreign currencies.
A U.S.-brokered ceasefire between Israel and Lebanon raised hopes of a detente as the cessation of Israeli attacks was one of Tehran's preconditions for further talks. Hezbollah rejected the deal which included a withdrawal of the Iran-backed militia from southern Lebanon, easing the decline in oil prices.
U.S. President Donald Trump earlier this week restated the claim that the Strait of Hormuz would reopen immediately once an agreement with Iran is signed. On Thursday, he said that "talks were going well" and downplayed Hezbollah's rejection of the ceasefire terms.
The resumption of loadings from Oman's Minah al Fahal port also weighed on prices after earlier reports suggested a fire forced shut one of the few Middle Eastern oil export terminals outside of the Strait of Hormuz.
This marked the latest in a series of mounting global supply disruptions. Intensifying Ukrainian attacks on Russian energy infrastructure have over the past month significantly curbed refined fuels production and crude oil exports from the country, and the U.S. blockade of Iranian maritime trade, now in its seventh week, has cut off the only oil stream still flowing out of the Persian Gulf.
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