Crude oil and refined product futures were on track for weekly gains as continued tensions in the Middle East were lifting NYMEX contracts at midday Friday.

Oil prices were up by more than $1/bbl while diesel prices were more than 1ct/gal higher. Gasoline futures were also on the rise, but concerns about soft winter demand and solid refinery output were keeping a lid on the increases.

Friday's strength in futures came as Secretary of State Antony Blinken traveled to the Mideast to speak with leaders in an effort to contain the spread of conflict amid Israel's ongoing war against Hamas.

Worries about the possibility of the violence escalating had traders looking beyond Thursday's bearish Energy Information Administration report that showed solid builds last week in U.S. diesel and gasoline stocks.

The NYMEX February West Texas Intermediate crude contract was up $1.53 to $73.72/bbl as of 11:50 a.m. Friday, about 70cts off morning highs. The March WTI contract was $1.54 higher at $73.90/bbl.

March Brent crude was up by $1.29 to $78.88/bbl while the April contract was also $1.29 higher at $78.70/bbl.

Oil prices were about $2/bbl above when they settled Dec. 29.

The NYMEX February ULSD contract was ahead by 1.91cts to $2.6075/gal, with the March contract up 2.31cts to $2.5766/gal.

The NYMEX February RBOB contract was 1.54cts higher at $2.1255/gal, while the March contract was up by 1.46cts to $2.1497/gal.

ULSD prices are about 2cts off earlier highs and RBOB was down about 1ct. RBOB prices are about 2.5cts/gal above where they settled on Dec. 29 and ULSD contracts are on course to end the week with a gain of nearly 7cts/gal.

Most U.S. spot diesel prices were being pulled higher by futures gains, but gasoline price moves were varied, with declines of more than 10cts/gal in California markets and an increase of more than 3cts/gal in the Gulf Coast.


This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.


--Reporting by Steve Cronin, scronin@opisnet.com; Editing by Jeff Barber, jbarber@opisnet.com


(END) Dow Jones Newswires

01-05-24 1242ET