uploads///sunset _

Tanker Explosion in the Middle East Pushes Oil Prices Up

By

Jun. 13 2019, Updated 7:34 a.m. ET

Oil prices on June 13

As of today at 6:19 AM EST, US crude oil July futures had risen more than 3% from their last closing level. News of an oil tanker explosion in the Middle East led to the sharp rise in oil prices. The explosion occurred near the same area where last month’s attacks were carried out on oil tankers. However, the cause of the explosion is still unknown.

Article continues below advertisement

Explosion helped oil prices to recover

On June 12, US crude oil July futures declined 4%. On the same day, the EIA reported a rise of 2.20 MMbbls (million barrels) in oil inventories for the week ended June 7 compared to a Reuters poll for a fall of 0.48 MMbbls. Moreover, gasoline inventories rose 0.8 MMbbls, slightly more than the Reuters poll.

Energy stocks might open higher

On June 13, energy stocks might open higher because of a rise in US crude oil prices. Energy stocks constitute 5.2% of the S&P 500 Index (SPY). A rise in oil prices because of a supply shock might push the S&P 500 higher today. Moreover, the Brent-WTI spread also reacted to the tanker explosion in the Middle East. The Brent-WTI spread expanded 35 cents from the previous day. Upstream stocks like ConocoPhillips (COP) and Pioneer Natural Resources (PXD) might benefit from the rise in the Brent-WTI spread. PXD oil price realization follows Brent crude oil prices.

Advertisement

More From Market Realist

  • Table Jack on 'Shark Tank'
    Miscellaneous
    ‘Shark Tank’ Sharks Thought Table Jack Was a Wobbly Business Prospect
  • Woman using a DrainWig in a shower
    Miscellaneous
    DrainWig Hasn’t Gone Down the Drain Since ‘Shark Tank’
  • Element Bars' Jonathan Miller on 'Shark Tank'
    Miscellaneous
    ‘Shark Tank’ Stars Said Element Bars’ Valuation Was 'Insane'
  • Roger Altman
    Miscellaneous
    How Evercore Chairman Roger Altman Made His Millions
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.