DTN Oil Update
Oil Falls 2nd Week in Row as Iran Uncertainty Continues
SECAUCUS, N.J. (DTN) -- Crude oil and refined product futures fell for a second straight week amid brief price spikes as uncertainty over the Iran war's direction and swelling U.S. fuel inventories gave market participants few reasons to be bullish.
NYMEX WTI crude for December delivery retreated by $0.18, or 0.20%, to close at $88.56 bbl after reaching an intraday high of $89.64. For the week, the U.S. crude benchmark fell 2.5% after the prior week's 13% drop.
ICE Brent crude for January delivery climbed $0.02, or 0.02%, to settle at $95.84 bbl after peaking at $97.13 bbl. The weekly slide of 2.5% followed the prior week's loss of almost 17%.
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Downstream, in diesel, NYMEX ULSD for December delivery tumbled $0.0280, or 0.65%, to end at $4.2585 gallon after reaching an intraday high of $4.3458. It dropped 1.5% on the week, after prior back-to-back losses of 7% and 2%.
In gasoline, NYMEX RBOB for December dipped $0.0494, or 1.85%, to finish at $2.6214 gallon after a session peak of $2.6761. It fell 5% on the week, extending the previous week's deficit of 12%.
The U.S. Dollar Index strengthened by 0.216 points to 103.310 after tapping a high of 103.335 for the day against a basket of foreign currencies.
Energy markets spent the week whipsawed between early diplomatic optimism and renewed geopolitical brinkmanship in the Middle East. Hopes for an imminent ceasefire quickly evaporated after President Donald Trump said Thursday the U.S. should not seek a deal with Iran, directing the vice president to pivot from diplomacy to domestic policy.
Midday escalation headlines briefly lifted futures off morning levels before afternoon selling took hold. Iran claimed a natural gas tanker struck a mine in the Strait of Hormuz and alleged it destroyed a U.S. warning radar -- a claim Washington denied while confirming U.S. forces downed two Iranian drones -- even as Mossad Director Roman Gofman met with CIA leadership in Washington to urge renewed strikes.
Ultimately, fundamental supply headwinds capped the geopolitical risk premium into the weekend. The International Energy Agency (IEA) reported Friday that global oil supply jumped 2.3 million bpd in October to 105.4 million bpd, pushing the market into surplus for the first time since the war began while revising 2026 global demand down to a 2.7 million bpd contraction.
Bearish domestic inventory metrics reinforced that downward pressure despite IEA warnings of persistent diesel tightness into 2027. U.S. Energy Information Administration data published Thursday showed distillate fuel oil stocks surged by 4.1 million bbl last week, overshadowing seasonal highs in refinery crude demand.
Meanwhile, domestic logistics relief appeared set to continue after industry sources said the Trump administration is preparing a 90-day extension to the Jones Act shipping waiver ahead of Sunday's (11/15) expiration. The waiver has facilitated 90 million additional bbl of foreign-flagged domestic shipments between U.S. ports since March while retaining strict case-by-case vessel availability checks.
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