Written Commentary
CRUDE OIL
March Crude Oil was sharply higher early Thursday on concerns about a potential US strike against Iran. President Trump warned Iran that “time is running out” to negotiate a deal on its nuclear program following a steady build-up of US military forces in the Gulf. The market worried, among other things, that Iran could close the Strait of Hormuz, through which some 20 million barrels per day travel. Reuters reports that Trump is considering options that include targeted strikes on security forces and leaders to inspire protesters to potentially topple Iran’s rulers. On the bearish side, Saudi Arabia is expected to set its March price Arab Light crude to Asia at a discount to the Oman/Dubai price for the first time since December 2020, which is being attributed to ample supplies in the wake of increased OPEC+ production last year.
PRODUCTS
Product prices rallied along with crude oil early Thursday in the wake of President Trump’s latest threats against Iran. Wednesday’s EIA report showed gasoline stocks were +200,000 barrels last week versus +1 million expected and that distillate stocks were +300,000 rather than being -600,000 as expected.
NATURAL GAS
Product prices rallied along with crude oil early Thursday in the wake of President Trump’s latest threats against Iran. Wednesday’s EIA report showed gasoline stocks were +200,000 barrels last week versus +1 million expected and that distillate stocks were +300,000 rather than being -600,000 as expected.
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