MARKET: Oil prices rise on tanker attacks

Oil futures rallied on the New York and London markets June 13 following attacks on two oil tankers near the Strait of Hormuz although crude settlements failed to completely recover from the previous trading session losses of more than $2/bbl.

Oil futures rallied on the New York and London markets June 13 following attacks on two oil tankers near the Strait of Hormuz although crude settlements failed to completely recover from the previous trading session losses of more than $2/bbl (OGJ Online, June 13, 2019).

US Sec. of State Mike Pompeo said Iran was responsible for the “unprovoked attacks” on two tankers in the Gulf of Oman on June 14. Iranian officials called Pompeo’s accusation disinformation and “warmongering.”

US officials also blamed Iran for similar attacks May 14 against four tankers. The two tankers attacked June 13 were bound for Asia.

In the latest attacks, the US Pentagon has released a video and photographs showing what US officials say is an Islamic Revolutionary Guards Corps boat pulling alongside a damaged ship and removing an unexploded mine. The Guard Corps is an elite branch of Iran’s military.

Iran has denied involvement in the attacks.

US Central Command and news reports indicated a South Korea cargo ship, Hyundai Duhai, rescued more than 20 mariners from the M/V Kokuka Courageous who abandoned ship. The mariners later were transferred aboard the USS Bainbridge. The other damaged ship was Norwegian-owned Front Altair.

Kokuka Courageous initially reported damage to its starboard hull in an unspecified incident. Japanese owners of Kokuka Courageous said the ship was hit twice over hours, the Financial Times reported.

Energy prices

Light, sweet crude oil on the New York Mercantile Exchange for July delivery rose $1.14 to $52.28/bbl while the August contract increased $1.17 to settle at $52.54/bbl.

NYMEX natural gas for July was down 6¢ to settle at a rounded $2.33/MMbtu.

Ultralow-sulfur diesel for July increased 3¢ to a rounded $1.81/gal. The NYMEX reformulated gasoline blendstock for July gained 3¢ to a rounded $1.72/gal.

Brent crude for August added $1.34 to $61.31/bbl. The September price increased $1.26 to settle at $60.45/bbl.

The gas oil contract for July gained $6 to $568/tonne on June 13. The average for the Organization of Petroleum Exporting Countries’ basket of crudes was up 50¢ to $61.51/bbl on June 13.

Contact Paula Dittrick at paulad@ogjonline.com.

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