Crude oil and refined product prices surge as geopolitical events unfold
- Crude oil and refined product futures are rallying
- Tensions in the Middle East are increasing
- Protests have forced the shutdown of Libya’s Sharara oil field
- Buyers are entering the oil markets
- February West Texas Intermediate reached $72.90
- RBOB and ULSD futures are also rallying
- Cash markets are following the futures contract higher
- Group 3 diesel discounts are widening slightly
- Winter weather is anticipated in the Northeast
Crude oil and refined product futures are rallying on Wednesday, with oil prices up just over $2 and products posting increases of more than 5 cents. Tensions in the Middle East are increasing, and protests have forced the shutdown of Libya’s 300,000 b/d Sharara oil field, one of the country’s largest fields. These events have brought buyers into the oil markets, pushing February West Texas Intermediate to reach $72.90. RBOB and ULSD futures are also rallying, with RBOB up by 5.71 cents at $2.152/gal. Most cash markets are following the futures contract higher, but Group 3 diesel discounts are widening slightly. Additionally, winter weather is anticipated in the Northeast, boosting diesel prices by about 7.5 cents. Overall, geopolitical tensions and supply disruptions are driving the surge in oil prices.
Public Companies: Dow Jones & Co (N/A)
Private Companies: undefined
Key People: Denton Cinquegrana (Reporter), Michael Kelly (Editor)
Factuality Level: 7
Justification: The article provides information about the rally in crude oil and refined product futures, the tensions in the Middle East, and the shutdown of Libya’s oil field. It also mentions the increase in prices and the impact of winter weather on the diesel market. However, the article lacks specific sources for the information provided and does not provide a comprehensive analysis of the factors influencing the market. Therefore, while the article contains some factual information, it may not be fully reliable or objective.
Noise Level: 3
Justification: The article provides relevant information about the rally in crude oil and refined product futures, including the reasons behind the price increase such as tensions in the Middle East and the shutdown of Libya’s oil field. However, the article lacks in-depth analysis, scientific rigor, and actionable insights. It mainly focuses on reporting the price movements and market trends without providing a deeper understanding of the implications or potential consequences.
Financial Relevance: Yes
Financial Markets Impacted: Crude oil and refined product futures markets
Presence of Extreme Event: Yes
Nature of Extreme Event: Political Upheaval or Revolution
Impact Rating of the Extreme Event: Moderate
Justification: The article mentions that tensions in the Middle East are ramping up and protests have forced the shutdown of Libya’s oil field. Additionally, a senior Hamas leader was killed and there were blasts at a memorial for an Iranian General. These events contribute to the political upheaval in the region.
www.marketwatch.com 
