Oil: Rally pace moderates after Iran strikes – Commerzbank
Commerzbank analysts note that Brent extended its rally and closed above USD95, although gains moderated after President Trump suggested the renewed US bombing campaign against Iran could be short-lived.
Commerzbank analysts have observed that the rally in oil prices has slowed down following recent strikes by Iran. Despite Brent crude oil closing above USD95, the gains have been more subdued after US President Trump indicated that the US bombing campaign against Iran might be of a short duration. The volatile situation in the Middle East continues with no clear signs of de-escalation.
The US executed a second round of airstrikes within three days, targeting radar systems and mine-laying capabilities along Iran's southern coast. Iran responded by attacking US bases across the Middle East. Brent crude oil prices increased by 1% to USD95.63, while gold rebounded around 1.2% to USD4,382.
Although the oil market appears more stable compared to previous months, diesel is exhibiting a contrasting trend. For the first time, the US diesel crack spread, which is the premium of ultra-low sulphur diesel futures over West Texas Intermediate (WTI), surged above $100 per barrel, reaching an intraday high of just over $102.00.
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