Good morning, you're listening to Markets Desk.
Oil is back in focus this Friday as geopolitical risk reasserts itself. Crude prices climbed after Iran issued threats of retaliation should the United States target its critical infrastructure, pushing traders back into the risk premium trade and reversing some of Thursday's losses driven by dollar strength and long liquidation.
That dollar strength was the dominant crude story heading into the weekend close. August West Texas Intermediate settled Thursday down nearly one percent, with a firming greenback prompting profit-taking across energy futures. Gasoline contracts followed suit, surrendering earlier gains as traders unwound length built on earlier supply concerns.
Adding to the energy complex's pressure, natural gas dropped to a two-month low after the Energy Information Administration reported inventories rose by forty-one billion cubic feet in the week ended July tenth, coming in well above expectations. That surplus reading hit sentiment hard, sending August Nymex natural gas down more than two percent on the session and signaling the market remains adequately supplied heading into late summer.
That's the tape. Markets Desk, signing off the floor.
