Oil Up 4th Day in Row as Mideast on Edge Despite Ceasefire


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Oil futures rose a fourth consecutive session Thursday 
(4/23) on mounting tensions in the Middle East as Israel and Iran announced 
readiness to resume their near two-month long war, while the U.S. continued to 
push for a peace deal that could free blocked shipping lanes holding up a fifth 
of world energy supply.

   The Israeli military was poised for renewed combat with Iran, Defense 
Minister Israel Katz said, warning of "different, lethal attacks" if fighting 
resumes.

   Iranian media reported that local air defenses were already engaging with 
hostile targets in parts of Tehran as its leaders rejected U.S. President 
Donald Trump's peace overtures while the White House maintained a blockade on 
Iran's maritime trade.

   Since the start of this week, Iran has signaled no compromise over its grip 
on the Strait of Hormuz, following the U.S. navy's blockade of all ships 
entering and exiting Iranian ports.

   Iranian state television broadcast footage from Wednesday (4/22) of masked 
troops boarding two international vessels seized for crossing the Hormuz 
without its permission. That seizure appeared to be in response to the U.S. 
capture of an Iranian tanker oil tanker on Tuesday (4/21).

   Before the current Middle East conflict that began at end-February, some 140 
ships traversed the Hormuz daily, carrying an estimated 20 million bpd of 
petroleum liquids that accounted for 20% of global energy supplies.

   Trump said Thursday he has ordered the U.S. navy to "shoot and kill" any 
vessel seen attempting to lay new mines on the Hormuz, which according to 
reports, may require up to six months to be cleared of mines already laid. The 
president claimed that the U.S. had complete control over Iran's maritime 
trade, with the U.S. armed forces reporting that 33 vessels had been stopped 
so0 far from gaining to access to Iranian ports. Tehran countered that four 
Iranian vessels had evaded U.S. detection over the past two days.

   U.S. petroleum exports appeared to be the major beneficiary of the Hormuz 
blockade, with the Energy Information Administration reporting a record high 
shipment of 8.08 million bpd of oil product shipments from the United States 
during the week ended April 17 as refiners and consumers worldwide scrambled to 
replace lost Middle Eastern supply.

   At Thursday's close, NYMEX WTI crude for June delivery settled up $2.89, or 
3%, at $95.85 bbl. Week-to-date, WTI was up almost 15%, offsetting last week's 
13% tumble.

   Brent crude for June finished up $3.16, or 3%, at $105.07 bbl on ICE. The 
global crude benchmark is up 16% on the week, after the prior week's 5% slide.

   Among refined products, diesel proxy ULSD ended May trading on NYMEX up 
$0.0503 at $3.9882 gallon. In gasoline, NYMEX RBOB for May closed up $0.1042 at 
$3.4621 gallon.

   The U.S. Dollar Index rose 0.218 points to 98.63 against a basket of foreign 
currencies by 3.20 p.m. ET.




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