Brent Fades Gain as Hostilities Ease, RBOB Slips on Demand


   
   CRANBURY, N.J. (DTN) -- Oil futures nearest delivery on the New York 
Mercantile Exchange and Brent crude on the Intercontinental Exchange settled 
Friday's session shallowly mixed after spiking overnight in response to what 
has been characterized as an Israeli retaliatory attack in Iran following an 
Iranian attack against Israel over the past weekend.

   ICE June Brent futures rallied to $90.75 bbl overnight on concern Tehran 
would respond to the attack on Iranian soil, potentially triggering a broader 
war in the oil-rich Middle East. Instead, news reports note Tehran is playing 
down the overnight attack, with Brent falling to a $86.19 bbl low intraday. At 
settlement, June Brent edged up $0.18 to $87.29 bbl.

   The U.S. crude benchmark gained $0.41 to $83.14 bbl, with NYMEX May West 
Texas Intermediate futures widening the prompt premium to $0.92 bbl ahead of 
expiration Monday (4/22) afternoon. The U.S. dollar ended flat at 105.984 in 
index trade against a basket of foreign currencies, easing from Tuesday's 
(4/16) 106.325 6-1/2 month high as the prospect of interest rate cuts are 
pushed back on sticky inflation. The Federal Open Market Committee is not 
expected to reduce the federal funds rate until September, according to the CME 
FedWatch Tool. Some in the market think the central bank will leave the key 
overnight bank borrowing rate, now in a 5.25% by 5.5% target range, unchanged 
in 2024.

   NYMEX May RBOB futures eased $0.0034 with a $2.7103 gallon settlement 
Friday, as weak demand undermines recent bullish bets for the gasoline 
contract. RBOB fell below trendline support, now at $2.8146 gallon, on 
Wednesday following data from the Energy Information Administration showing 
gasoline supplied to the U.S. market averaging 8.806 million bpd during the 
four weeks ended April 12, down 168,000 bpd or 1.9% against the comparable year 
ago period.

   May ULSD futures on NYMEX edged $0.0074 higher to $2.5413 gallon after 
testing support at the $2.5075-gallon 2024 low in early trading. The prospect 
of increased demand from the agriculture sector for planting encouraged buying 
sentiment.

    

    

   Brian L. Milne, 1.732.768.0260, brian.milne@dtn.com, www.dtn.com.

    




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