The war against Iran widened Thursday prompting a jump in international crude oil prices to more than $119 a barrel but at the end of the day, prices fell $11 and US prices were down to the upper $90.
The scope of Israeli attacks included the launching of air strikes in northern Iran as well as Iranian naval vessels on the Caspian Sea cost. However, it was the responding Iranian attacks on the oil and gas facilities of Gulf Arab countries including the most notable target, Ras Laffan, site of Qatar’s core liquefied natural gas processing operations, the biggest in the world, that set the region ablaze. They account for a fifth of global LNG supplies. It came after Israel reportedly attacked Iranian energy facilities in South Pars.
Brent crude rose to $119 a barrel early Thursday but by the closing of trading, it dropped to $108.65 a barrel, still up $1.27 or 1.18% from the previous day. The $119.13 price was close to a three and one-half peak reached on March 9.
U.S. West Texas Intermediate crude finished at $96.14 a barrel, down 18 cents or 0.19%. Earlier, WTI gained almost $4 to trade at $100.02. WTI has been trading at its widest discount to Brent in 11 years.
Israel’s attacks on the Iranian natural gas infrastructure reportedly angered President Trump who said Thursday he told Israel to not repeat the attacks.
Saudi Arabia’s main port on the Red Sea, where it has been able to divert some exports to avoid Iran’s closure of the Gulf’s exit point, the Strait of Hormuz, was also attacked, according to Reuters.
Natural gas prices finished up for the day, settling at $3.129 MMBtu with a gain of $0.064 or 2.15%.
What’s it mean for consumers in the U.S. who pull up to the gas pumps?
AAA reported the national average was $3.84, same as Wednesday. But diesel fuel prices rose 3 cents to reach an average price of $5.09 per gallon. A month ago, American motorists paid an average $2.92 for a gallon of gasoline.
Oklahoma’s average of $3.24 was a penny higher on Thursday while diesel fuel was unchanged at $4.28 per gallon.
The average in Tulsa went up one cent to reach $3.29 for gasoline while diesel fuel was unchanged at $4.35 per gallon.
Oklahoma City’s average price fell a penny to $3.24 and diesel fuel did the same, settling Thursday at $4.24 per gallon.