November WTI crude oil futures rose more than $4 a barrel on October 20, the day the contract expires. The Investing.com Energy Report says last week's hurricane more than likely dried up Gulf Coast supplies, while attacks on Russian energy sites and the Iran blockade keep supply risk in focus. US fuel prices are higher than a year ago.
November WTI futures rose over $4 a barrel on the morning of October 20, as the contract expires. The report says traders are buying because last week's hurricane more than likely dried up supplies on the Gulf Coast.
War strikes target Russian and Iranian oil
Ukraine hit St. Petersburg with a large-scale drone attack over the weekend, setting fires at an oil terminal and depot. Kyiv said it was responding to ongoing Russian strikes on its own energy infrastructure. Earlier in the week, Ukraine also hit the Ryazan refinery.
Meanwhile, the oil embargo and U.S. naval blockade stopped Iranian oil exports. Reports say the harbors and loading terminals at Kharg Island have sat empty for weeks, with no tankers docking since late August.
Shipping costs add to the pressure. Reuters reported that Asian refiners are turning to smaller tankers and long-term charters as freight rates hover near all-time highs. Rumors are also swirling that the U.S. and Iran are on the verge of a major peace or ceasefire agreement.
US gasoline and diesel cost more than a year ago
According to AAA, the national average for regular gasoline is $4.279 per gallon as of October 20, about $1.24 higher than a year ago. Diesel costs $6.320 per gallon, near the September record high and more than $2.70 above year-ago levels.
Not every energy market is rising. Natural gas is down about 5 cents. Most estimates cluster around an 82 Bcf storage build for the week ended October 16. Mild temperatures mean neither furnaces nor air conditioners are running hard.
Source: Investing.com
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