Oil prices today: Oil and diesel prices jump again on Monday after Donald Trump’s Iranian power plant threat
Prices for diesel surged again over Easter on worries the Middle East war could extend for weeks or months.
Oil and diesel prices jumped on Monday as US President Donald Trump threatened to destroy Iranian power plants and bridges in an expletive laden social media post.
On Monday morning, Brent Crude futures for May rose 2.1 per cent to $US114.37 a barrel, with US WTI oil futures at $US111.12 a barrel.
London Gas Oil futures - as the benchmark for global diesel - surged 5.7 per cent to $US1567 a metric tonne at their highest level since the war began.
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By continuing you agree to our Terms and Privacy Policy.The paper diesel price has now jumped 108 per cent since closing at $US752 per dry metric tonne before the war began on February 26.
The price surge comes after Mr Trump said the conflict could last another two to three more weeks from April 1, unless Iran meets his peace conditions including an agreement to reopen energy shipping passage the Strait of Hormuz.
On Monday morning, some shipping data suggested Iran was allowing passage to nations from Russia, China, Pakistan, India, and Iraq. Other news reports suggested a single French vessel had navigated the Strait of Hormuz over the weekend after paying Iran a toll.
“Tankers passing through the Strait [of Hormuz} are 98 per cent below that seen the week before the war,” said Oxford Economics’ Chief Global Economist Ryan Sweet.
“We estimate that the average June quarter oil supply disruption will be around 7.5 million barrels per day, but if the military timeline is extended, risks are that oil prices will rise more than we currently anticipate, and that would both extend and increase the economic costs.”
Gold prices opened 1.4 per cent lower at at $US1461 an ounce. The Australian dollar also edged 0.2 per cent lower to $US68.9 cents.
Australian share markets are closed for the Easter Monday holiday. Wall Street futures pointed to falls at the open on Monday night.
