Oil prices jumps 4% to 2-month high as tensions rise in Middle East
(Reuters) - Oil prices rose more than 4% on Wednesday,...
(Reuters) - Oil prices rose more than 4% on Wednesday, to their highest in more than two months, after sources said the U.S. was preparing to evacuate its Iraqi embassy due to heightened security concerns in the Middle East.
Brent crude futures settled $2.90, or 4.34%, higher to $69.77 a barrel.U.S. West Texas Intermediate crude gained $3.17, or 4.88%, to $68.15. Both Brent and WTI reached their highest since early April.
Surprised traders bought crude futures on reports that the U.S. was preparing to evacuate its embassy in Iraq, OPEC's No. 2 crude producer after Saudi Arabia. A U.S. official said military dependents could also leave Bahrain. "The market wasn't expecting this big geopolitical risk," said Phil Flynn, analyst at Price Futures Group.
Earlier, Iran's Minister of Defense Aziz Nasirzadeh Tehran will strike U.S. bases in the region if nuclear talks fail and conflict arises with Washington.
Trump said he was less confident that Iran would agree to stop uranium enrichment in a nuclear deal with Washington, according to an interview released on Wednesday. Ongoing tension with Iran means its oil supplies are likely to remain curtailed by sanctions.
Supplies will still increase, as OPEC+ plans to boost oil production by 411,000 barrels per day in July as it looks to unwind production cuts for a fourth straight month.
"Greater oil demand within OPEC+ economies – most notably Saudi Arabia – could offset additional supply from the group over the coming months and support oil prices," said Capital Economics' analyst Hamad Hussain in a note.
News of a trade deal between the U.S. and China, which could boost energy demand in the world's two biggest economies, also kept prices elevated.
A new Energy Department report predicts a near doubling in the official forecast for next year's electricity consumption. The rise is largely driven by the rapid expansion of data centers. The report projects a 2.15% increase in total US power usage in 2026, with a 5% spike in commercial usage attributed to data center growth.
US oil production is projected to decline by 0.4% to 13.37 million barrels per day next year, marking...
US oil production is projected to decline by 0.4% to 13.37 million barrels per day next year, marking the first drop since 2021, according to a projection from Wood Mackenzie. However, the drop will be substantially offset by projects in the Gulf of America coming online in 2026. The additions will take that region's production to over 2 million bpd.
Dow ends flat, S&P and Nasdaq fall as details emerge on U.S.-China trade deal
The Dow Jones Industrial Average finished flat on Wednesday,...
The Dow Jones Industrial Average finished flat on Wednesday, while the S&P 500 and Nasdaq closed lower for the first time in four sessions, as traders assessed a Wall Street Journal report that indicated China has the upper hand in trade talks with the U.S.
Stocks closed lower despite a surprisingly muted consumer-price index for May and a solid $39 billion 10-year Treasury auction.
The Dow Jones Industrial Average finished little changed at around 42,866 after swinging between gains and losses earlier in the day, based on preliminary data.
The S&P 500 dropped almost 0.3% to end at roughly 6,022.
The Nasdaq Composite declined 0.5% to close at almost 19,616.
U.S. Policy to Hobble Midstream Cos.' Feedstock Shipments to China
The U.S. Energy Information Administration (EIA) reported June 10 that...
The U.S. Energy Information Administration (EIA) reported June 10 that a new U.S. policy will cut ethane trade by a quarter in 2025 and by a half in 2026.
The policy directly affects midstream companies Energy Transfer (ET) and Enterprise Products Partners (EPD).
In May, the U.S. Bureau of Industry and Security (BIS), part of the Commerce Department, notified companies that ethane and butane played a large role in creating end-use items for China’s military and that exporting the NGLs posed an unacceptable security risk.
About half of U.S. ethane production goes to China, and Enterprise and Energy Transfer are the only two companies exporting to the nation. All of China’s ethane exports come from the U.S.
The government now requires permits to continue trading.
