Nymex Overview: Brent Reclaims $80/bbl Mark as Mideast Tensions Remain High — OPIS

Crude futures were more than $2.50 higher, leaving Brent values above $80/bbl and West Texas Intermediate at more than $77/bbl on the one-year anniversary of Hamas's attack on Israel.

Refined products futures were mostly matching gains in crude on Monday, even as it appears that Hurricane Milton will track south and east of oil production platforms in the Gulf of Mexico.

Israel has yet to retaliate against Iran for its missile assault last week and as long as a reprisal remains in the future, few traders will likely be willing to sell.

Israel's response to Iran's missile strike will help determine the direction of crude prices. WTI has already exceeded the $77/bbl target laid out by Goldman Sachs about a week ago and there is little sign traders are following Citigroup's advice to sell into the market's strength.

The December Brent contract was up by $2.76 to $80.81/bbl. The Nymex November WTI contract was $2.63 higher at $77.01/bbl.

Refined products contracts were also sharply higher and U.S. cash gasoline prices have risen by about 15cts over the last six trading days. The Nymex November RBOB contract was up by 6.49cts to $2.1607/gal and other forward months also posted increases of more than 6cts. Spot markets were outperforming futures with gains of 6.25cts to 10cts.

The median U.S. retail price for gasoline fell below $3/gal on Monday for the first time since 2021, OPIS data showed. But the average price remains above $3.17/gal and a number of market sources believe prices will increase over the next several days.

The ebb in retail prices has dropped the average U.S. rack-to-retail margin from more than 45cts/gal to barely 30cts/gal.

Diesel contracts also were seeing strong buying. The Nymex November ULSD contract was 7.01cts higher at $2.3815/gal and U.S. cash prices were up by 3.5cts to 8.5cts.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

-- Reporting by Tom Kloza, tkloza@opisnet.com; Editing by Jeff Barber, jbarber@opisnet.com

(END) Dow Jones Newswires

October 07, 2024 13:01 ET (17:01 GMT)

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