Crude oil prices plunged as US waited for Iran’s response to bombing attack

Iran’s weak response to the U.S. bombing attack on its nuclear weapons development operations came in the form Monday of missiles fired at a US airbase in Qatar while crude oil prices fell 6% with no apparent interruption of the flow of oil out of the Middle East.

No casualties were reported in the missile attack and Doha said the attack was intercepted before any damage or injuries could be inflicted on the Udeid air base.

Hours after some experts predicted oil prices could reach $100 per barrel, prices tumbled $5 a barrel for a more than 6% drop in Monday’s trading. Iran apparently did not follow through with its government decision announced Sunday to close the Strait of Hormuz through which 20% of Middle East oil flows.

As the energy industry watched and waited to see what might happen with oil prices, President Trump on Monday urged his administration to boost drilling rates and warned market players to keep prices down. He told the U.S. Energy Department in a Truth Social platform message to “drill, baby, drill” and added, “I mean now.”

Reuters reported that in another post, the President emphasized in all caps: “Everyone, keep oil prices down, I’m watching! You’re playing into the hands of the enemy, don’t do it.”

Global benchmark Brent crude futures fell $4.90 or 6.3% to close at $72.19 a barrel. The tumble in prices came after Brent had opened nearly 6% higher following President Trump’s weekend announcement that B-2 bombers dropped bunker busting bombs that he said “obliterated” Iran’s main nuclear sites.

The U.S. benchmark, West Texas Intermediate crude dropped $4.60 or 6.2% and finished at $69.23 per barrel on the New York Mercantile Exchange.

The unsteady Middle East situation certainly had an impact on Oklahoma energy stocks as most recorded losses in Monday’s trading.

Consider what happened to Tulsa’s Vital Energy as it dropped nearly 10%. One of the state’s major players, Devon Energy fell more than 4%, Helmerich and Payne had the same loss, while Ovintiv dropped more than 6%.

 

Alliance Resource Partners LP
25.77 USD−0.22 
Coterra Energy Inc
26.71 USD−0.26 
Devon Energy Corp
32.83 USD−1.45 
Empire Petroleum Corp
5.72 USD+0.19 
Expand Energy Corp
121.45 USD−0.60 
Gulfport Energy Corp
201.79 USD−4.73 
Helmerich and Payne Inc
16.35 USD−0.76 
 LSB Industries Inc
8.25 USD−0.21 
Mach Natural Resources LP
15.04 USD−0.31 
Mammoth Energy Services Inc
2.96 USD+0.11 
Matrix Service Co
13.10 USD+0.38 
NGL Energy Partners LP Unit
4.61 USD−0.050 
OGE Energy Corp
44.75 USD+0.79 
ONE Gas Inc
73.65 USD+1.56 
ONEOK Inc
79.85 USD−2.52 
Ovintiv Inc
38.91 USD−2.59 
PHX Minerals Inc
4.35 USD
SandRidge Energy Inc
11.53 USD−0.38 
Stardust Power Inc
0.19 USD+0.0076 
Unit Corp
27.00 USD−0.060 
Vital Energy Inc
18.86 USD−2.00 
Williams Companies Inc
60.48 USD−0.010