Futures in New York dropped as much as 1.1 percent after rising 0.5 percent earlier. Israeli Prime Minister Benjamin Netanyahu said his country has documents that prove Iran had a program to build atomic bombs. That’s raising concern Trump may pull the U.S. out of a nuclear accord between Iran and world powers, a move that energy consultant FGE says could cut the Persian Gulf nation’s 2019 oil exports by 700,000 barrels a day. FGE Chairman Fereidun Fesharaki said Trump is likely to restore sanctions on Iran, meaning buyers would have to cut their crude purchases from the country in 180 days. The nation’s exports could drop by 200,000 to 500,000 barrels a day this year, leading to higher oil prices, he said. Click Read More below for additional information.
National Average Price for Regular Unleaded – Current: $2.283; Month Ago: $2.232; Year Ago: $2.596. National Average Price for Diesel – Current: $2.923; Month Ago: $2.953; Year Ago: $2.998.
Oil prices steadied after three days of gains on Wednesday after industry data showed a surprise decline in U.S. crude inventories and tension over the disappearance of a prominent Saudi journalist stoked supply worries. “Numbers from the American Petroleum Institute surprised the market (on Tuesday), with U.S. crude oil inventories declining by 2.13 million barrels over the last week, compared to expectations of a stock build,” said ING commodities strategist Warren Patterson. A Reuters survey ahead of the API data had estimated crude stocks rose about 2.2 million barrels. U.S. gasoline stocks dropped by a larger-than-expected 3.4 million barrels, while distillate fuel stockpiles declined by a smaller-than-expected 246,000 barrels, the API data showed. Click read more below for additional detail.
Oil slipped to around $63 a barrel on Tuesday as concerns faded for now that rising tensions in the Middle East would escalate and hit oil supplies, compounding the impact of a weaker demand outlook. But due to strong growth in supply from the United States and other non-OPEC producers, oil supply is exceeding demand, according to the International Energy Agency, despite lower Iranian exports and OPEC’s voluntary supply curbs. Click Read More below for additional information.