MARKET WATCH: Crude prices rally on US-Iran tension

Analysts attributed growing US-Iran tensions to higher crude oil prices June 20. Light, sweet crude oil for July settled nearly $2.90/bbl higher on the New York market while Brent contract for August delivery also rose by more than $2/bbl in London.

Jun 21st, 2019

Analysts attributed growing US-Iran tensions to higher crude oil prices June 20. Light, sweet crude oil for July settled nearly $2.90/bbl higher on the New York market while Brent contract for August delivery also rose by more than $2/bbl in London.

An Iranian surface-to-air missile shot down a US military surveillance drone in what US officials called an “unprovoked attack.” But Iran says the drone was shot down over its territory.

The incident marked the latest in rising tensions between the US and Iran since President Donald Trump declared the nation’s exit from a 2015 international agreement about Iran’s nuclear program. Since then, US oil sanctions were imposed on Iran and encouraged other countries to refrain from buying Iranian oil.

Recently, US officials have accused Iran of attacks on oil tankers in the Persian Gulf region.

Trump tweeted on June 20 that Iran made a “very big mistake” by shooting a US drone.

Energy prices

Light, sweet crude oil on the New York Mercantile Exchange for July delivery gained $2.89 to $56.65/bbl while the August contract climbed $3.10 to settle at $57.01/bbl.

NYMEX natural gas for July declined 9¢ to a rounded $2.18/MMbtu.

Ultralow-sulfur diesel for July rose 5¢ to a rounded $1.88/gal. The NYMEX reformulated gasoline blendstock for July gained 5¢ to a rounded $1.78/gal.

Brent crude for August climbed $2.63 to $64.45/bbl. The September price increased $2.72 to settle at $63.76/bbl.

The gas oil contract for July rose $19.25 to $579.50/tonne on June 20. The average for OPEC’s basket of crudes was $63.95/bbl on June 20, up $1.74 from the previous day.

Contact Paula Dittrick at pdittrick@endeavorb2b.com.

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