Oil Up on U.S. Pressure over Iran; Crude Build Limits Gains


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Oil futures rose Wednesday (2/11) as the Trump 
administration renewed his pressure on Iran. However, the bullish sentiment was 
limited by a large weekly rise in crude and gasoline stocks reported by the 
U.S. Energy Information Administration (EIA).

   This morning, U.S. President Donald Trump said in an interview that he was 
considering deploying a second U.S. aircraft carrier strike group to the Middle 
East to prepare for possible military action if Iran did not meet U.S. demands. 
The Trump administration aims to dismantle Iran's nuclear program and missile 
capability, which are seen as threats regional stability.

   Tensions in the Middle East have put pressure on crude prices for weeks amid 
concerns over Iran's production of 3.2 million bpd and the safety for vessels 
in the adjoining Strait of Hormuz, where some 20% of the world petroleum 
cargoes pass.

   Also helping Wednesday's energy rally was the U.S. Bureau of Labor 
Statistics report that nonfarm employment grew by 130,000 in January -- double 
the level anticipated by Wall Street forecasters and well above December's 
growth of 50,000. Higher employment signals better economic growth that could 
lead to more energy usage.

   On the supply front. U.S. commercial crude oil stocks surged by 8.5 million 
bbl to 428.8 million during the week to February 6, the EIA said. The build 
reversed the 3.5 million bbl tumble in crude inventories recorded in the prior 
week, when production of approximately 2 million bpd was gutted by Winter Storm 
Fern.

   Gasoline balances increased by 1.2 million bbl to 259.1 million, adding to 
the prior week's rise of 700,000. It marked the 13th straight week of gasoline 
stock builds in a season where consumption is typically lower versus supply 
amid winter conditions that reduce driving.

   Distillate fuel oil inventories declined by 2.7 million bbl to 124.7 
million, after the previous week's increase of 300,000 bbl.

   On the global front, the Organization of Petroleum Exporting Countries and 
its partners pledged to maintain a 1.4 million bpd growth forecast for world 
oil demand in 2026 in their monthly report for February, unchanged from last 
month.

   The OPEC+ group also maintained its forecast of 600,000 bpd for global 
production growth for this year.

   The NYMEX WTI for March delivery settled up $0.67, or 1.1%, at $64.63 bbl. 
April ICE Brent futures contract rose by $0.60, or 0.9%, to $69.40 bbl.

   March RBOB futures contract climbed $0.0253 to $1.9845 gallon. The 
front-month ULSD contract advanced by $0.0513 to $2.4501 gallon.

   The U.S. Dollar Index rose by 0.035 points to 96.71 against a basket of 
currencies.

    

    




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