Iran’s limited retaliation and statement against further escalation are pushing markets lower. WTI Crude is trading at $62.04, a loss of 66 cents.
Fuel is down in early trading this morning. Diesel is trading at $2.0186, a loss of 1.4 cents. Gasoline is trading at $1.7110, a loss of a 1.1 cents.
Crude markets are down this morning after news of a limited response from Iran using airstrikes on US-Iraqi military bases and an announcement from the Iranian Prime Minister that Iran does not seek escalation or war. Iran’s Prime Minister Javad Zarif tweeted last night that the Islamic Republic “took & concluded proportionate measures in self-defense under Article 51 of UN Charter targeting base from which cowardly armed attack against their citizens & senior officials were launched;” the country stated it does not seek escalation or war but will defend itself against any aggression.
Fifteen missiles were fired by Iran last night, 10 of which hit the Ayn al-Asad base in western Iraq and another facility in Erbil, according to two US officials. No casualties were reported. President Trump tweeted late last night that “All is Well” after Iran’s attack on US bases in Iraq. Iranian revolutionary guard threatened to attack both Israel’s “Haifa” & UAE’s “Dubai” if the US strikes back after this attack.
OPEC and UAE sought to temper concerns over Middle Eastern oil supply after Iran fired missiles at US forces in Iraq; UAE Energy Minister Suhail Al Mazrouei told reporters in Abu Dhabi that global crude markets are well supplied, and the OPEC+ will respond if necessary, to spiking tensions in the region. The escalating conflict between the US and Iran does not pose a risk to the Strait of Hormuz, a bottleneck for oil shipments from the Persian Gulf, he said.
The API reported a larger-than-expected draw for crude of 5.9 MMbbls versus an expected draw of 3.6 MMbbls. At Cushing, stocks fell with a draw of 1.0 MMbbls. The API reported distillates and gasoline had larger-than-expected builds. The EIA will report numbers later this morning.