Oil Up 3rd Straight Day on Iran Heat, U.S. Stockpile Drop


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Oil prices rose for a third consecutive day Wednesday 
(6/3) as rising tensions in U.S.-Israeli relations and fresh hostilities in the 
Middle East delayed an end to the Iran war and reopening of the Strait of 
Hormuz to energy shipments.

   Also underpinning the rally were U.S. crude stockpiles which hit a near 
four-month bottom last week even distillate and gasoline inventories rose from 
recent lows, according to the U.S. Energy Information Administration (EIA) data.

   NYMEX WTI crude for July delivery settled up $2.26 at $96.02 bbl, rising 
2.4% on the day to add to the prior two-day tally of 7%.

   ICE Brent crude for August delivery rose by $1.81 to close at $97.81 bbl, 
adding almost 2% to the prior 4% climb on Monday through Tuesday.

   WTI and Brent prices advanced after the EIA said crude stocks fell for a 
sixth straight week, plunging 8 million bbl to 433.7 million bbl during the 
latest week ended May 29. That marked the lowest inventory level and the 
steepest single-week drawdown in U.S. crude since mid-February.

   Downstream, NYMEX ULSD for July delivery edged higher by $0.1494 to settle 
at $ 3.8481 gallon.

   ULSD pricing rose despite distillate fuel inventories rising by 1.5 million 
bbl to 102.3 million bbl during the week ended May 29, according to the EIA. 
ULSD prices have been on uptrend, picking up momentum after inventories hit 
23-year lows in the week to May 22.

   NYMEX RBOB for July slipped $0.0126 to close at $ 3.1316 gallon the EIA 
reported that gasoline inventories increased by 3.4 million bbl to 215 million 
bbl during the week ended May 29 after hitting near six-month lows the week 
prior.

   On the forex market, the US dollar index rose by 0.326 points to 99.51 
against a basket of foreign currencies.

   Tensions in U.S. and Israeli relations dominated media coverage of the war 
in Iran. U.S. President Donald Trump confirmed that he held a phone call with 
Israeli Prime Minister Benjamin Netanyahu to express his dismay with Israel's 
continued bombardment of Iranian ally, the Lebanese Hezbollah.

   Iran has said it will negotiate any settlement with the U.S. unless the 
attacks on Lebanon stop. Lebanese media reported on Wednesday an Israeli drone 
strike just south of Beirut and also heavy bombardment across southern Lebanon 
that killed at least six people.

   Kuwait also faced heat from Iran, which launched missiles at its 
southwestern neighbor, accusing it lending territory to U.S. forces attacking 
Iran. Kuwait denied the charge after some 30 missiles targeted at its airport 
that resulted in a death and various human injuries.




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