Crude oil and refined product futures experienced modest declines on Friday as traders remained cautious ahead of Israel’s anticipated retaliatory actions against Iran. Concerns over whether these actions will target Iran’s energy infrastructure are likely contributing to a reluctance among traders to hold short positions over the weekend.
After several days of heavy trading volumes, the morning session showed comparatively lighter activity, with total West Texas Intermediate (WTI) volume just exceeding 957,000 contracts. This follows a streak where daily volumes topped 1 million contracts for seven consecutive sessions.
Market Prices
NYMEX November WTI Contract: Down 53 cents at $75.32 per barrel.
December Brent Contract: Decreased by 50 cents to $78.90 per barrel, with both contracts dropping by more than $1 earlier in the session.
NYMEX November RBOB Contract: Fluctuated between minor gains and losses, rising by 0.2 cents to $2.1529 per gallon, with an intraday price range of approximately 5 cents.
Refined Product Markets
Most spot refined product markets are tracking futures closely. The Gulf Coast spot gasoline saw its discount narrow by about 1 cent to 5 cents. Meanwhile, the NYMEX November ULSD contract traded about 0.5 cents lower at $2.3464 per gallon, remaining around 3.5 cents above its morning low.
Weekly Outlook
While crude oil and RBOB futures are pointing towards flat or slightly higher prices week-over-week, ULSD futures appear to be on track to end the week down by approximately 5 cents.
This overview highlights the cautious trading environment influenced by geopolitical tensions and the ongoing fluctuations in crude oil and refined product futures. As the market responds to external events, traders will be closely monitoring developments that could impact prices in the coming days.
