DTN Oil Update
Oil Ends Week Above $100 Bbl as More Swings Seen
SECAUCUS, NJ (DTN) -- Crude futures held in the lower $100 bbl territory while distillate and gasoline prices marched higher for the week, as planned Saudi force majeures on European deliveries and ongoing repairs to a pipeline operated by the kingdom sent mixed supply signals to oil markets Friday.
Despite the swings through the week, the spread of over $2 bbl between the NYMEX WTI prompt contract for October and nearby November signaled supply tightness that could keep traders on the buy side.
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NYMEX WTI crude for October delivery fell $1.93, or 1.88%, to settle at $100.30 bbl. For the week, it finished up almost 1%, rising for a third week in a row. WTI for November hovered at around $98 bbl.
ICE Brent for November delivery moved down $0.95, or 0.9%, to settle at $103.87 bbl. It fell about 1% on the week.
On its second-to-last day as the prompt month, October WTI also swung against the front-month Brent contract, with the difference falling to as low $1.50 bbl -- marking the tightest spread since May -- before returning to more than $3 by the settlement.
Downstream, NYMEX ULSD for October delivery eased $0.0638, or 1.18%, to $5.0578 gallon. The weekly gain of 1.5% added to the prior week's advance of more than 9%.
RBOB for October advanced $0.0110, or 0.30%, to $3.5276 gallon. The weekly climb was around 6%, extending the prior week's rise of almost 3%.
The dollar's upward moves since a Federal Reserve rate this week added to the volatility in energy futures. In Friday's session, however, the U.S. dollar index slid 0.035 points to 99.95 against a basket of currencies.
Focus for this week has largely been on Saudi Arabia's 7 million bpd East-West pipeline, which was initially shuttered Sunday after attacks by Houthi militia. As the week progressed, the kingdom reassured crude buyers in recent days that 50% of the pipeline's capacity could be restored in short order. Yet, reports on Friday stated that Saudi Aramco plans to halt October term cargo deliveries to Europe.
Reinforcing market uncertainty was constrained tanker movement through the Strait of Hormuz. Although transit on the waterway has gradually recovered from early conflict lows, exports of refined product remain severely throttled -- hovering at roughly 25% of pre-war volume -- due to damaged processing infrastructure and limited transport options.