The crude market was down for the week. The major news for the week driving markets was Iran’s retaliation on Wednesday for the US killing Iranian military commander Qassem Soleimani. Iran’s missile attack targeted equipment at two air bases from which the Soleimani’s attack was launched. There were no reports of casualties or injuries. This measured Iranian response was accompanied by an announcement from Iran calling for no further escalation to the situation. Markets read these actions as a de-escalation, and Trump seems to agree.
In inventory news, a surprise build reported by the EIA helped to drive markets lower this week. Crude built by 1.2 MMbbls compared to analysts’ expectation for a 3.6 mmbbls draw. This was the first crude build since the week of December 5th.
Prices in Review
WTI Crude opened the week at $63.71. On Wednesday the price spiked on initial news of Iran’s retaliation, but fell as more news came in showing de-escalation. Crude opened Friday at $59.61, a loss of $4.10 (-6.4%).
Diesel opened the week at $2.0755. It followed crude through the week to spike then drop on Wednesday. Diesel opened Friday at $1.9522, a loss of 12.3 cents (-5.9%).
Gasoline opened the week at $1.7556. It also followed crude throughout the week. Gasoline opened Friday at $1.6579, a loss of 9.8 cents (5.6%).