Oil bounces back up to $90 over U.S. and Iran disputes of words

We have $90 barrel oil again after the U.S. and Iran continued their latest fight….a war of words over who really controls the Strait of Hormuz through which 20% of the world’s produced oil must be transported.

President Trump once again claimed the U.S. is in control of the vital waterway and threatened to bomb Oman if it “gets in the way.”

“We control it with the blockade,” the U.S. president said, referring to an ongoing naval blockade of Iranian ports that Washington has threatened to carry on indefinitely. Monday was also the deadline of the memorandum of understanding between Washington and Tehran that collapsed in July. The President said he was not seeking to extend the agreement.

Brent crude futures expiring in October rose more than $2.25 or 2.5% to settle at $90.68 a barrel.

West Texas Intermediate crude futures, also expiring in October, rose at least $2.71 or 2.7% per barrel to close at $83.64 on the New York Mercantile Exchange.

Brent crude managed a 6% surge last week and WTI rose more than 5.5%. Over the weekend, Iran’s foreign minister reiterated Tehran’s stance that it was not engaged in direct discussions with the U.S., while Washington warned of slapping more economic measures to squeeze the Iranian economy and force the country to the negotiating table.

As oil rose, natural gas prices fell Monday, settling at $2.702 MMBtu with a decline of $0.031 or 1.13%.

Monday produced a half and half day for Oklahoma energy stocks. Devon Energy managed a gain of 4% while USA Rare Earth fell nearly 4%.

Alliance Resource Partners LP