MARKET WATCH: Crude oil benchmarks up on Iranian tanker news

Oct. 14, 2019
Oil benchmark prices traded higher on Oct. 11 with light, sweet crude oil prices on the New York market and Brent crude oil prices in London both increasing more than $1/bbl.

Oil benchmark prices traded higher on Oct. 11 with light, sweet crude oil prices on the New York market and Brent crude oil prices in London both increasing more than $1/bbl.

Tensions in the Middle East heightened Oct. 11 following Iranian media reports of a rocket attack on an Iranian oil tanker. Damage to the tanker caused by an explosion resulted in an oil spill into the Red Sea that was brought under control, Iranian news agency IRNA reported. Reports on the damaged were mixed, but the impact on oil prices is expected to be minimal.

The estimated risk premium of the event of $1/bbl “could easily be erased within a couple of sessions if no blame is assessed and no follow up incidents develop,” said Jim Ritterbusch, president of Ritterbusch & Associates, in a research note.

Energy prices

Light, sweet crude oil prices on the New York Mercantile Exchange for November increased $1.15 to $54.70/bbl on Oct. 11 while the December contract increased $1.22 to $54.78/bbl.

The November natural gas price fell less than 1¢ to $2.21/MMbtu on Oct. 11.

Ultralow-sulfur diesel for November edged up a rounded 4¢ to a rounded $1.96/gal. The NYMEX reformulated gasoline blendstock for November rose a rounded 2¢ to a rounded $1.64/gal.

Brent crude for December gained $1.41 to $60.51/bbl. The January contract was up $1.47 to settle at $60.12/bbl.

Gas oil for November increased $16.25 to $595.75/tonne on Oct. 11. The Organization of Petroleum Exporting Countries’ basket of crudes on Oct. 11 was $60.95/bbl, up $2.24.