No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Thursday, October 9, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

oil prices fall back after short-lived surge in early trading

by TheAdviserMagazine
4 months ago
in Business
Reading Time: 5 mins read
A A
oil prices fall back after short-lived surge in early trading
Share on FacebookShare on TwitterShare on LInkedIn


The price of oil was essentially flat Monday morning U.S. time after having opened higher Sunday evening U.S. time following the military strike on Iran by the Trump administration.

Even the initial increase in price was considered somewhat underwhelming compared to the more apocalyptic predictions heard prior to the attack.

However, from the perspective of the trucking industry, it was the continued strength of diesel compared to crude and gasoline that might get the greatest amount of attention.

At approximately 7:05 p.m. EDT, about an hour after trading began on various exchanges, global crude benchmark Brent was up $1.88/barrel to $78.89/b, a gain of 2.44%. The U.S benchmark crude grade, West Texas Intermediate, was up 2.52% to $75.70/b, a gain of $1.86/b. RBOB gasoline, which is a semi-finished gasoline product that serves as the trading platform for finished gasoline, was up 2.19% to $2.3806/gallon, an increase of 5.11 cts/g. (RBOB is essentially gasoline without the added ethanol).

But it was ultra low sulfur diesel (ULSD) that showed the largest increase Sunday evening. It rose 3.67% to $2.6352/g, an increase of 9.34 cts/g.

In a remarkable reversal, by 9:30 a.m. EDT, oil prices were flat to down from the Friday settlement on the CME commodity exchange.

Just before 9:30, ULSD was down about 25 basis points, or .09%. WTI was up .08% and Brent was up a little less than 0.2%.

Later news that two oil tankers that had at first done a U-turn to avoid going through the Strait and then reversed that decision and went through anyway helped calm markets.

In an interview on Bloomberg Television and reported by Bloomberg, Bob McNally, founder of Rapidan Energy Advisers LLC and a long-time Washington energy official, said earlier gains in the market already had moved the price to a level that reflected possible turmoil.

“We are up $10 a barrel since the war started, now a little more, and so I think there is an appropriate amount of risk in the market,” he said. “Traders are holding their breath, waiting to see if Israel or Iran expand this conflict beyond military and political targets into traded energy. “So far, no one has pulled that trigger , and if they don’t, I can see the price reversing.”

If ULSD settled at that level Monday afternoon in the U.S., it would be the highest price since a settlement of $2.6513/g on April 16, 2024.

The most bullish scenario for the oil market in the weeks leading up to the attack by the U.S. on Iranian nuclear facilities and now in the wake of an actual one is the fate of the Strait of Hormuz, which is the gateway to the Persian Gulf and the route of oil exports from numerous countries, including Saudi Arabia, Kuwait, Iraq and Iran.

Story Continues

A Reuters report from 2023, quoting various sources, said about 20% of the world’s roughly 103 million b/d of consumption passes through the Strait of Hormuz every day. There are alternative export routes via pipeline for some of the countries, but it is unclear how much the infrastructure ramping up to 100% of capacity can replace normal export levels through the Strait.

The Strait of Hormuz is not international waters. Part of it is Iranian territorial waters; the other portion is the territorial waters of Oman.

The Iranian Parliament voted over the weekend to close the Strait of Hormuz, though several news reports noted that the decision whether to implement such a radical step would be up to the country’s senior leadership.

Secretary of State Marco Rubio, in an interview with Fox News Sunday, called upon China to dissuade Iran from pursuing that policy. China is easily the largest customer for Iranian crude, and the supply line for it comes out of Iran via the Strait and on to China.

“I encourage the Chinese government in Beijing to call them about that, because they heavily depend on the Straits of Hormuz for their oil,” Rubio said, according to several reports of his interview.

It was noted by other analysts that closing the Strait of Hormuz would have an outsized impact on Iranian exports, cutting off its most important revenue source.

Meanwhile, the soaring spread between crude and diesel is a relatively new phenomenon.

On a straight comparison of front month ULSD to front month Brent, that spread Sunday evening, using the 7:05 pm prices, translated to about 75 cts/gallon. It is the widest spread since February 2024. A month ago it was about 56 cts/g.

In its monthly report on the market for middle distillates including diesel, published just before the actual attack, the oil market analytics research firm of Energy Aspects spelled out some of the reasons for the continuing strength of diesel relative to crude.

“We see increasing risks to middle distillates supply due to the escalation of the Israel–Iran conflict after last Friday’s attacks,” EA said.

As far as the two Middle East combatants, the EA report said all Israeli refiners are “non-operational” after attacks by Iran. The country has a relatively small refining capacity, but it is a net exporter of diesel, EA said. That means it presumably will need to turn to imports to replace the lost capacity.

As far as Iran, EA said, it produces about 700,000 b/d of diesel. It also is a net exporter of diesel, “but could need to import in case of any supply disruptions,” it said.

EA’s report also contained a chart showing a relatively tight level of diesel inventories in Europe. (Figures are in millions of barrels).

U.S. inventories also have been well below the five and 10-year average for the second week in June, but with diesel demand down as well, the amount of “days cover”–the size of the stocks measured as how long on their own they could cover consumption–has been climbing in recent weeks.

More articles by John Kingston

DAT and OTR, embroiled in dispute over factoring, reach settlement and end battle

Onstage in Chicago, CHRW talks tech and staffing; RXO sees language order hitting capacity

Logistics GDP share rose in ’24, not likely to drop: CSCMP report

The post Update: oil prices fall back after short-lived surge in early trading appeared first on FreightWaves.



Source link

Tags: EarlyFalloilPricesshortlivedsurgeTrading
ShareTweetShare
Previous Post

Stock market today: Dow futures drop 150 points, oil jumps after U.S. bombs Iran

Next Post

7 Assets That Thrive During Inflation (And 3 That Tank)

Related Posts

edit post
Gavin Newsom flexes his own ‘MAHA’ plan as he moves to crack down on ultraprocessed foods in school lunch

Gavin Newsom flexes his own ‘MAHA’ plan as he moves to crack down on ultraprocessed foods in school lunch

by TheAdviserMagazine
October 9, 2025
0

California will phase out certain ultraprocessed foods from school meals over the next decade under a first-in-the-nation law signed Wednesday...

edit post
Top strategist Paul Dietrich shares 2 picks to ride out an AI crash

Top strategist Paul Dietrich shares 2 picks to ride out an AI crash

by TheAdviserMagazine
October 9, 2025
0

Paul Dietrich shared two alternative investments to AI, saying the tech boom is a bubble. Wedbush's chief strategist recommended utilities...

edit post
Affirm, Klarna stocks surge on new collaboration with Google (KLAR:NYSE)

Affirm, Klarna stocks surge on new collaboration with Google (KLAR:NYSE)

by TheAdviserMagazine
October 9, 2025
0

400tmax/iStock Unreleased via Getty ImagesAffirm (NASDAQ:AFRM) and Klarna (NYSE:KLAR) stocks were trading higher after the payment processors announced collaboration with...

edit post
Why Citi believes blockchain is ‘here to stay’ on Wall Street

Why Citi believes blockchain is ‘here to stay’ on Wall Street

by TheAdviserMagazine
October 9, 2025
0

When Satoshi Nakamoto introduced Bitcoin to the world in 2008, the pseudonymous coder envisioned his decentralized currency as a reaction...

edit post
Shekel keeps going from strength to strength

Shekel keeps going from strength to strength

by TheAdviserMagazine
October 9, 2025
0

The shekel strengthened considerably against the major currencies today, following the signing of the cease fire agreement for the...

edit post
Gaza pact “mighty turning point” for Israeli real estate

Gaza pact “mighty turning point” for Israeli real estate

by TheAdviserMagazine
October 9, 2025
0

Investors on the Tel Aviv Stock Exchange have responded positively to the agreement for a ceasefire in the Gaza...

Next Post
edit post
7 Assets That Thrive During Inflation (And 3 That Tank)

7 Assets That Thrive During Inflation (And 3 That Tank)

edit post
Asian stock markets: Asian shares slip, oil rises as investors weigh Iran scenarios

Asian stock markets: Asian shares slip, oil rises as investors weigh Iran scenarios

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
Tips to Apply for Mental Health SSDI Without Therapy

Tips to Apply for Mental Health SSDI Without Therapy

September 19, 2025
edit post
Raymond James sues to retrieve dead advisor’s laptop

Raymond James sues to retrieve dead advisor’s laptop

September 11, 2025
edit post
Rothbard on the Constitution | Mises Institute

Rothbard on the Constitution | Mises Institute

0
edit post
SCA Grants Bybit Full UAE License; Expansion Planned in Abu Dhabi and Dubai

SCA Grants Bybit Full UAE License; Expansion Planned in Abu Dhabi and Dubai

0
edit post
The Overlooked Latency Layer in Forex VPS Performance

The Overlooked Latency Layer in Forex VPS Performance

0
edit post
Richey confirmed to lead Education Department’s Office for Civil Rights

Richey confirmed to lead Education Department’s Office for Civil Rights

0
edit post
Gavin Newsom flexes his own ‘MAHA’ plan as he moves to crack down on ultraprocessed foods in school lunch

Gavin Newsom flexes his own ‘MAHA’ plan as he moves to crack down on ultraprocessed foods in school lunch

0
edit post
Where to Get a Low-Cost or Free Mammogram

Where to Get a Low-Cost or Free Mammogram

0
edit post
Gavin Newsom flexes his own ‘MAHA’ plan as he moves to crack down on ultraprocessed foods in school lunch

Gavin Newsom flexes his own ‘MAHA’ plan as he moves to crack down on ultraprocessed foods in school lunch

October 9, 2025
edit post
Where to Get a Low-Cost or Free Mammogram

Where to Get a Low-Cost or Free Mammogram

October 9, 2025
edit post
Is This Budgeting App Worth It?

Is This Budgeting App Worth It?

October 9, 2025
edit post
SCA Grants Bybit Full UAE License; Expansion Planned in Abu Dhabi and Dubai

SCA Grants Bybit Full UAE License; Expansion Planned in Abu Dhabi and Dubai

October 9, 2025
edit post
Rothbard on the Constitution | Mises Institute

Rothbard on the Constitution | Mises Institute

October 9, 2025
edit post
Top strategist Paul Dietrich shares 2 picks to ride out an AI crash

Top strategist Paul Dietrich shares 2 picks to ride out an AI crash

October 9, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Gavin Newsom flexes his own ‘MAHA’ plan as he moves to crack down on ultraprocessed foods in school lunch
  • Where to Get a Low-Cost or Free Mammogram
  • Is This Budgeting App Worth It?
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.