DTN Oil Update
Oil in $100 Bbl Range as War Hits More Middle East Energy
SECAUCUS, N.J. (DTN) -- U.S. West Texas Intermediate crude revisited $100 bbl territory while North Sea Brent peaked at near $120 Thursday after new attacks by Iran on Middle Eastern oil and gas infrastructure.
The latest hostilities against global energy output came on the heels of Wednesday's, March 18, strikes by Israel on the South Pars gas hub, which accounts for up to 80% of Iran's natural gas output.
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Tehran in response launched missiles Thursday at Ras Laffan, the site of Qatar's core liquefied natural gas operations. The UAE, meanwhile, reportedly shut some energy operations, after its Habshan gas facilities and the Bab oil field were impacted by debris from intercepted missiles. Kuwait reported Iranian drone hits on two of its refineries, and Saudi Arabia said it had intercepted an Iranian drone aimed at a gas facility.
The Strait of Hormuz bordering Iran and Oman, meanwhile, remained inaccessible to tankers that used to carry 21 million bpd of petroleum liquids.
U.S. President Donald Trump, in an attempt to contain the Middle East conflict's widening impact on energy, told Israel in a social media post late on Wednesday, March 18, to cease attacks on Iranian gas while cautioning Tehran not to target Qatar's LNG.
"I do not want to authorize this level of violence and destruction because of the long term implications that it will have on the future of Iran, but if Qatar's LNG is again attacked, I will not hesitate to do so," Trump wrote on his Truth Social media platform.
Separately, a media report on Wednesday said the Trump administration was considering deploying thousands of U.S. troops to reinforce its operation in the Middle East. The White House, which initially pledged not to put U.S. boots on the ground for the war in Iran, did not immediately comment on that.
By 8:55 a.m. EDT, NYMEX WTI futures for April were up $0.66 at $96.98 bbl after reaching a session high at $100.02. The May delivery contract for Brent was higher by $5.46 at $112.84 bbl, following an intraday peak at $119.11 bbl.
WTI has risen 40% and Brent 58% since the U.S.-Israeli military campaign against Iran began on Feb. 27. Brent's global standing amid the conflict has pushed its premium over WTI to around $16 bbl, a gap unseen since 2019.
WTI has also lagged as U.S. crude inventories continued to climb amid the global supply crisis, rising 6.2 million bbl during the week ended March 13 to a near two-year high of 449.3 million bbl, as per data from the Energy Information Administration.
Among refined products, April ULSD rose $0.2142 to $4.4120 gallon, while RBOB gasoline advanced $0.0681 to $3.1666 gallon. The U.S. Dollar Index dipped 0.063 points to 99.18.