Crude oil prices were back up again at mid-week and the upward spiral happened after both Israel and Iran threatened more attacks on petroleum operations. International prices rose to nearly $110 a barrel. Bunker busting bombs were dropped on missile sites along the Strait of Hormuz where oil tankers have been stalled.
AAA reported that a gallon of regular unleaded gas averages $3.84 nationally while prices in Oklahoma are $3.23 per gallon. Gasoline prices are an estimated 32 percent higher than a month ago before the U.S. joined Israel in launching air strikes to prevent Iran from development of a nuclear bomb ability.
The Washington Post reported attacks on Iran’s South Pars gas field Wednesday fueled the surging oil prices and triggered threats from Tehran of strikes against energy infrastructure in the Persian Gulf. Qatar and Iran accused Israel of attacking facilities connected to South Pars, a large natural gas field; Qatar operates a part of the field to the north.
Oil soared even after President Trump attempted to fight rising prices with a 60-day suspension of the Jones Act which prohibits foreign vessels from shipping oil and gas between U.S. ports.
Brent crude rose Wednesday to $109.60 a barrel after a gain of $6.17 or 5.97%.
West Texas Intermediate crude rose $2.41 or 2.32% per barrel to finish at $98.53 on the New York Mercantile Exchange.
Iran’s semi-official Tasnim News Agency on Wednesday said the Islamic Revolutionary Guard Corps (IRGC) had listed oil and gas targets in Saudi Arabia, the United Arab Emirates, and Qatar and had warned citizens to keep clear of those locations.
The IRGC’s move came after media reports said facilities in Iran’s South Pars field – the largest natural gas field in the world – had been targeted by the Israeli Air Force. Qatar condemned the attack.
Natural gas prices in the U.S. finished at $3.186 MMBtu with a gain of $0.156 or 5.14%.
A majority of Oklahoma energy stocks finished on the negative side Wednesday. Stardust Power fell more than 15% while USA Rare Earth Inc. dropped more than 6%. Mach Natural Resources had a nearly 3% gain.