Oil and Gas prices at the close - June 13

[dan_s]

Trading Economics

WTI crude oil futures jumped 7.55% to settle just at $73.18 per barrel on Friday, paring some gains after hitting their highest level since February amid escalating tensions in the Middle East.
> The surge followed an Israeli strike on Iran, which vowed retaliation, heightening fears of a broader conflict. While the attacks did not directly target oil infrastructure, investors remain wary of potential retaliation, especially given Iran’s strategic control near the Strait of Hormuz—a critical chokepoint for global oil shipments.
> Iran's April crude output stood at 3.305 million barrels per day, underscoring the region’s vital role in global energy supply.
> Adding to the bullish sentiment, data from the International Energy Agency showed a larger-than-expected drop in U.S. crude inventories last week, suggesting firm demand.
> Despite mounting geopolitical tensions, the IEA reassured markets that it holds 1.2 billion barrels of emergency reserves and stands ready to intervene if necessary.

US natural gas futures (JUL25) closed at $3.61 per MMBtu, tracking broader gains across energy markets amid escalating tensions in the Middle East. However, the increase was more muted compared to the sharp moves seen in oil and other gas benchmarks.
> The geopolitical spike followed Israel’s wave of strikes against Iran.
> Meanwhile, US natural gas fundamentals remain relatively stable. Storage levels have improved since a colder-than-expected winter depleted inventories.
> According to the EIA, the week ending June 6 saw another triple-digit storage build. While inventories are 9% lower year-over-year, they remain 5.4% above the five-year seasonal average, signaling adequate supply. < Comparison to the 5-year average is misleading since demand for U.S. natural gas is MUCH HIGHER than it was five years ago.
> Still, the rapid growth in LNG exports is raising concerns about tightening supply and upward pressure on prices later this year.
> In addition, weather forecasts call for hotter-than-normal temperatures across much of the US, which could boost demand for gas-fired cooling and exacerbate pressure on inventories.