Crude oil and refined product futures contracts see gains as tensions rise in the Middle East
Crude-oil and refined product futures contracts have experienced gains heading into Friday afternoon, with prices on track to end the week with strong increases. These gains have been supported by renewed tensions in the Middle East, as Israel rejects Hamas’ conditions for a ceasefire and resumes strikes in the Gaza Strip.
Crude oil futures show strong increases
The March NYMEX contract for West Texas Intermediate crude was 52 cents higher at $76.74/bbl at about noon EST, while the April contract rose 47 cents to $76.66/bbl. The front-month contract is about 6% ahead of last Friday’s settlement. On the other hand, the April Globex contract for Brent crude was 46 cents higher at $82.09/bbl, with the May contract rising 42 cents to $81.50/bbl.
Diesel prices surge
Diesel prices saw another day of large increases, with the March ULSD contract moving 7.81 cents higher to $2.9689/gal and April prices adding 6.29 cents to $2.8776/gal. The front-month contract has risen nearly 12% since last week.
RBOB futures mixed
RBOB futures were mixed, with the March contract drifting in and out of positive territory and showing a loss of 0.28 cents to $2.3392/gal. On the other hand, the April contract was 0.53 cents higher at $2.5629/gal, with the premium to March representing the upcoming shift to summer-specification gasoline.
Gasoline prices pull back in most spot markets
Gasoline prices have pulled back in most spot markets around the country, with Chicago, Group 3, San Francisco, and the Pacific Northwest seeing losses of more than 2 cents/gal.
Renewable Identification Number prices on track to end the week with gains
Renewable Identification Number prices, which have alternated between gains and losses in recent days, are on track to end the week with gains. D6 ethanol and D4 biodiesel RINs have risen by 0.75 cents.
This article was created by Oil Price Information Service, operated by Dow Jones & Co. Please note that OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
Reporting by Steve Cronin, [email protected]; Editing by Michael Kelly, [email protected]
Analyst comment
Positive news: Crude oil and refined product futures contracts have seen gains due to renewed tensions in the Middle East, with prices on track to end the week with strong increases.
As an analyst, I predict that the market will continue to experience gains in the short term due to the escalating tensions in the Middle East. Increased demand for crude oil and refined products is likely, leading to higher prices in the market.
