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Oil rises for fourth straight session as shipping risks persist
ING links the gains to tightening refining conditions and a record-high diesel crack spread, with US crude inventories falling last week.
Oil prices rose for a fourth consecutive session, supported by ongoing uncertainty around the US-Iran conflict and worries about shipping through the Strait of Hormuz, ING strategists Ewa Manthey and Warren Patterson said, according to FXStreet.
ING added that a slightly bullish US inventory backdrop also helped underpin the market. In the API report cited by the strategists, US crude inventories fell by 328k barrels versus market expectations for a 74k-barrel draw, while stocks at the WTI delivery hub in Cushing declined by 1.4m barrels.
The strategists also pointed to tighter product supply conditions, noting that record-high US diesel crack spreads climbed above $100 per barrel. They said diesel cracks have more than doubled since the start of the US-Iran conflict and were up more than 20% month-to-date, with gasoline stocks rising and distillate inventories falling.
FXStreet reported that the closely watched EIA inventory report was due later that day, after the earlier API numbers and amid continued risk premium support for prices.
Latest closeWTI crude $82.40 ▲1.4%|Gasoline (RBOB) $2.901 ▼7.3%