DTN Oil Update
Oil Up Anticipating Iran Hormuz Toll, Memorial Day Travel
SECAUCUS, N.J. (DTN) -- Oil prices steadied after a three-day decline to settle slightly higher Friday as tensions swelled again in the Middle East from U.S. opposition to Iran's plans to toll the Strait of Hormuz.
Record travel forecast across the United States for next week's Memorial Day holiday also boosted sentiment in futures trading of fuel.
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NYMEX WTI crude for July delivery settled up $0.25, or 0.3%, at $96.60 bbl, while ICE Brent for July finished higher by $0.96, or 1%, at $103.54 bbl.
For the week, WTI fell 9% and Brent 5%, impacted by losses from Tuesday through Thursday when the market reacted to attempts by mediator Pakistan to secure a permanent peace deal between the U.S. and Iran and reopen Hormuz, blockaded by Tehran, to tankers carrying a fifth of world petroleum supply.
Downstream, NYMEX ULSD futures for June delivery advanced by $0.0562 to close at $3.8878 gallon. June RBOB climbed $0.0743 to end at $3.4539.
Fuel prices rose as the AAA forecast that a record 45 million people in the United States will travel between Thursday, May 21, and the Memorial Day holiday on Monday, May 25.
After rising with few stops between March and April, energy markets have reversed course this month as the U.S. attempts to end the war with Iran which it began at end-February and restore shipping on the Hormuz.
Tehran plans a toll of $2 million on each oil tanker crossing the strait, creating a major negotiation sticking point despite claims from United States officials that talks show some positive signs. Iran and Oman reportedly held discussions Friday on enforcing the toll, ignoring warnings from U.S. President Donald Trump that the international waterway must remain free.
Iran also opposes handing over its enriched uranium to the U.S. or any other country chosen by the Trump administration, defying another core condition set by the White House for a permanent truce. Negotiations toward a deal have also been held up by Iran's demands that the U.S. lift its blockade on Iranian ports in order for any talks to begin.