U.S. crude oil prices rose above $73 a barrel on Tuesday as markets braced for an Iranian attack on Israel and Wall Street rebounded after a sell-off in the previous session.
West Texas Intermediate oil ended at a six-month low on Monday as stocks sold off on worries the U.S. economy could slip into recession.
But as oil prices stabilize S&P 500 Index and Dow Jones Industrial Average Comeback Tuesday. Escalating tensions in the Middle East also appeared to be providing support for oil prices. Israel is bracing for an Iranian attack after Hamas leader Ismail Haniyeh was assassinated in Tehran last week.
“It’s the decline in this major shoe that we’re waiting to see that’s keeping the price there,” John Kilduff, a founding partner at Again Capital, told CNBC’s “Power Lunch” on Monday. A degree of stability “If we didn’t have this turmoil in the stock market and capital markets, our stock price would be much higher. “
Here are Tuesday’s closing energy prices:
- West Texas Intermediate Oil September contract: $73.20 per barrel, up 26 cents, or 0.36%. U.S. crude has gained 2.16% so far this year.
- Brent October contract: $76.48 per barrel, up 18 cents, or 0.24%. The global benchmark has fallen 0.73% so far this year.
- RBOB gasoline September contract: $2.32 per gallon, little changed. So far this year, gasoline prices are up 10.63%.
- natural gas September contract: $2.01 per thousand cubic feet, up nearly 7 cents, or 3.5%. Natural gas prices are down 20% so far this year.
Oil markets have largely ignored geopolitical tensions in the Middle East as crude supplies have not faced any major disruptions. Analysts have warned for months that a direct conflict between Israel and OPEC member Iran could disrupt oil flows.
A US base in Iraq is believed to have been hit by a rocket attack, injuring several US personnel a defense official told NBC News.
“It’s striking that oil markets have so far not priced in the risks of a conflict that appears to be imminent,” Daniel Yergin, vice chairman of S&P Global, told CNBC’s “Squawk Box” on Tuesday.
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