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Crude oil prices rose more than $1 by midday Monday as European diesel demand was affected. russia sanctions Analysts said transportation disruptions pushed prices higher as a planned overhaul of U.S. refinery output capped the market and created volatility.
Brent crude oil futures rose $1.41 (1.73%) to $83.03 per barrel as of 12:11 p.m. CST (1:11 p.m. Japan time). US West Texas Intermediate crude oil futures (WTI) rose $1.48, or 1.93%, to $77.97.
“We’re all focused on diesel,” said John Kilduff, partner at Again Capital LLC.
How will the Israel-Hamas war affect oil prices?
Weak U.S. refining activity and disruptions to global trade have tightened diesel supplies in recent weeks, slowing U.S. diesel exports to Europe from a historic high this month.
U.S. diesel fuel prices soared to a four-month high at one point this month, exceeding $48 a barrel, narrowing arbitrage opportunities for shipping fuel to Europe.
Houthi rebels aligned with Iran in yemen U.S. Central Command announced Saturday that it narrowly missed a collision with a U.S.-flagged tanker. Another ship attacked by rebels last week was also abandoned and was seen leaking fuel in the Red Sea.
The potential for disruption is “plaguing this market,” Kilduff said.
Pumpjack on an oil rig extracting crude oil from the Wilmington oil field near Long Beach, California, July 30, 2013. (Reuters/David McNew/File Photo/Reuters Photo)
Price Futures Group analyst Phil Flynn said early trading on Monday was driven by concerns that persistent inflation would limit demand, but focus has shifted to more fundamental issues. Ta.
“We seem to be falling back on supply-side issues,” Flynn said. “Demand is very strong, so at the end of the day, it’s all about supply and demand.”
He said the U.S. refinery is expected to restart production in March after a planned overhaul of the plant is completed.
The U.S. Energy Information Administration said last week that U.S. refineries have been running at 80.6% of domestic capacity for the past two weeks.
Oil prices have hovered between $70 and $90 a barrel since November, as rising U.S. supplies and concerns about weak Chinese demand offset OPEC+ supply cuts, even as the war escalates. It is progressing. in ukraine And Gaza.
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As the conflict between Israel and Hamas continues in the Middle East, White House National Security Adviser Jake Sullivan told CNN on Sunday that negotiators from the United States, Egypt, Qatar and Israel are holding hostages at talks in Paris. Although the basic outline of the deal was agreed upon, it was still being negotiated.
