While President Trump called on nations that use the Strait of Hormuz for oil shipments to join in unblocking the stretch of water next to Iran, crude oil prices took a 3% drop in Monday’s trading. Some ships managed to make it through the dangerous narrow piece of water in the Persian Gulf.
AlJazeera reported Iranian Foreign Minister Abbas Araghchi told the US television network CBS on Sunday that Tehran had been “approached by a number of countries” seeking safe passage for their vessels “and this is up to our military to decide.” He added that a group of vessels from “different countries” had been allowed to pass, without providing details. But a few Indian-flagged tankers were allowed to pass without being attacked.
At the same time, while prices were in the lower $90s to just barely more than $100 a barrel, the IEA suggested more oil reserves should be released to cut the rising costs of the Iran war.
Brent crude, the global benchmark, fell $2.93 or 2.8% and settled at $100.21 a barrel.
West Texas Intermediate crude, the benchmark in the U.S., dropped $5.21 or 5.3% a barrel and closed at $93.50 on the New York Mercantile Exchange.
Reuters said analysts credited several reasons for the global oil prices falling, including near-record U.S. crude output bolstered by Venezuela imports and the upcoming release of oil from the U.S. Strategic Petroleum Reserve. In addition, some traders were selling the April WTI front-month contract before its coming expiration on the New York Mercantile Exchange on March 20.
Gasoline prices still rose but not as much as in past days. They reached a new U.S. average of $3.71 per gallon, an increase of 2 cents from Sunday, according to AAA. Diesel fuel averaged $4.98, up a penny in one day.
Prices in Oklahoma hit an average of $3.22 following a one-cent climb in one day and diesel fuel rose the same, reaching a statewide average of $4.27 per gallon. Gas Buddy, another fuel searching website, reported the cheapest gasoline price in the state was $2.25 per gallon in Elk City.
Prices in Oklahoma City rose a penny to hit a gasoline average of $3.28 while the cost of diesel fuel stood at $4.25 as of Monday afternoon.
Tulsa’s prices held steady at $3.28 per gallon of gasoline and $4.35 for diesel fuel.
Natural gas prices in the U.S. fell on Monday, reaching $3.025 MMBtu after a decline of $0.106 or 3.39%.
A near split between gainers and losers was recorded Monday among Oklahoma energy stocks. Helmerich and Payne dropped nearly 3% in the day’s trading. Gains were modest as Gulfport Energy Corp. and NGL Energy Partners each pushed 2% for the highest increases in state stocks.