Crude futures were down around midday Thursday following the previous session's sharp rally as traders continued to monitor developments in the Middle East.
As of 11:50 a.m. ET, September ICE Brent crude was trading $1.30 lower at $89.44/bbl, with the October contract down $1.21 at $86.88/bbl. The September West Texas Intermediate contract dipped 66cts to $83.80/bbl, while the October contract dropped $1.11 to $80.93/bbl.
Refined product futures were also trading lower. August ULSD fell 10.65cts to trade at $4.2636/gal, with September down 9.15cts at $4.1442/gal. The August RBOB contract was trading 8.4cts lower at $3.3138/gal, with September down 7.87cts at $3.1471/gal.
The pullback followed Wednesday's nearly 8% rally, even after the U.S. and Iran exchanged additional military strikes overnight. Ritterbusch & Associates said Thursday's weakness appeared tied to profit-taking following the previous session's advance, adding that the strength of WTI and Brent forward curves suggested the decline could prove short-lived.
Traders continued to monitor crude flows through the Strait of Hormuz and the Bab al-Mandab Strait while Iran and Oman remained in talks over management of Hormuz.
