Oil Jumps After Renewed US-Iran Fighting, Then Pares Gains

Brent crude futures jumped as much as 3% on Friday, a day after the U.S. and Iran traded air strikes, but pared gains as traders hoped for a longer pause in the fighting that has shut shipping in the Strait of Hormuz.

Brent crude futures settled at $101.29, and U.S. West Texas Intermediate crude (WTI) finished at $95.42. For the week, both contracts declined by 6.4%.

U.S. and Iranian forces clashed in the Gulf, and the UAE came under renewed attack as Washington awaited a response from Tehran to its proposal to end the conflict, which began with joint U.S.-Israeli airstrikes across Iran on 28 February.

U.S. President Donald Trump later on Thursday told reporters the ceasefire was still in effect and sought to play down the exchange.

However, on Friday, Trump renewed an ultimatum demanding Iran give up its nuclear ambitions.

Asia LNG slips on US–Iran deal hopes, weak Northeast Asia demand

Asia spot liquefied natural gas (LNG) slipped after two weeks of gains, on the prospect of a U.S.-Iran peace agreement and subdued Northeast Asia demand.

The average LNG price for June delivery into northeast Asia was $16.90 per million British thermal units (mmBtu), down from $17.80 per mmBtu the week before.

While prompt demand in May and June is not expected to be significantly bullish, forecasted hotter-than-normal temperatures for the summer months are likely to push South Korea and Taiwan back to the spot market.

In Europe, the Dutch TTF gas price settled at $15.15 per mmBtu, posting a weekly decline of 2.2%.

Spot demand in Europe comes from buyers that are short on delivery obligations and looking to backfill positions, rather than pure regasification holders looking to import and profit from spreads, analysts said.

— By The Al-Attiyah Foundation