OIL PRICES RISE AGAIN

U.S. oil hovers near $100​


U.S. crude oil prices rose more than 3% Tuesday on reports that Donald Trump is dissatisfied with Iran’s proposal to reopen the Strait of Hormuz.

Investors also kept an eye on OPEC after the United Arab Emirates said it was leaving the organization starting Friday.

West Texas Intermediate futures jumped more than 3% to $99.75 per barrel by 11:34 a.m. ET.

International benchmark Brent futures advanced about 3% to $111.49.

Trump told his advisors that he is not satisfied with Iran’s proposal to open the strait and end the war.

Even if hostilities ended immediately, a return to normal market conditions would take months, Lipow said, citing the need to clear mines, ease tanker congestion and gradually restart production and refining.

Factoring in shipping and distribution lags, he estimated it would take at least four to six months for oil markets to stabilize, with prices likely to remain elevated in the interim as inventories approach critical levels.

“The longer the conflict goes on, the higher the price, especially as inventories are drawn down to critical operating levels. If the conflict ended tomorrow, crude oil prices are estimated to drop $10 per barrel,” he added.

Absent any new negotiations, the WTI crude oil price will drift back up to $100, with the Brent Crude going over $110, Lipow said.
 
The people are onto the impact of Trump's war. The station was packed today with people loading up before the next price rise. A big jump is supposed to be coming in the next few days. Today's pump price was a jump from yesterday's.
 

Evening digest: US blockade, oil surge shake markets​



Oil prices spiked above $100 per barrel amid concerns over supply disruptions linked to the US blockade of the Strait of Hormuz, a critical route that handles roughly 20% of global oil and liquefied natural gas flows.

Prices later eased slightly, with Brent crude at $98.41 per barrel, up 3.4%, and WTI at $97.99, up 1.4%. Physical crude in Europe traded even higher, with some grades reaching around $150 per barrel.

However, gains were tempered after the Organization of the Petroleum Exporting Countries lowered its second-quarter demand forecast by 500,000 barrels per day, highlighting uncertainty in the demand outlook.
 
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