* Trump says no Americans harmed by Iran missile strike
* Trump says Iran appears to be standing down
* U.S. reports surprise increase in crude stockpiles
* Brent neared 4-month high before tensions ease
* Fears diminish as Iran does not attack oil facilities
* Reuters live blog - https://www.reuters.com/live-events/tensions-in-the-middle-east-id2917592
(Adds closing prices, price spread, quote)
By Scott DiSavino
NEW YORK, Jan 8 (Reuters) - Oil futures fell more than 4% on
Wednesday in a wild swing, soaring close to a four-month high in
early trade on an Iranian rocket attack on U.S. forces in Iraq
before retreating as the countries quickly ratcheted back
tensions.
Prices fell as it became evident the rocket attack did not
damage oil facilities or harm any Americans, with more pressure
coming from a surprise build in U.S. crude stockpiles.
U.S. President Donald Trump backed away from days of angry
rhetoric against Iran as the two countries tried to defuse a
crisis over the American killing of Iranian military commander
Qassem Soleimani.
"The fact that we have this great military and equipment ...
does not mean we have to use it," Trump said in an address from
the White House, noting Iran appears to be standing down.
Before Trump's address, prices were already retreating from
overnight highs after tweets by the U.S. president and Iran's
foreign minister signaled at least temporary calm.
Brent futures LCOc1 fell $2.83, or 4.2%, to settle at
$65.44 a barrel, their lowest close since Dec. 16. In early
trade, the contract hit its highest since mid-September at
$71.75.
The global benchmark had been trending higher since hitting
an October low of $56.15 per barrel; the session high on
Wednesday was 28% above that level.
U.S. West Texas Intermediate (WTI) crude CLc1 fell $3.09,
or 4.9%, to settle at $59.61 per barrel, its lowest close since
Dec. 12. The session high of $65.65 was the highest since late
April.
"Volatility to the extreme might best describe today's price
action as the crude benchmarks sold off ... roughly 9% from the
overnight highs," Jim Ritterbusch, president of Ritterbusch and
Associates in Galena, Illinois, said in a report.
The spreads between the session high and low were the widest
for WTI since November 2014 and Brent since September 2019.
The U.S. Energy Information Administration (EIA) said crude
inventories rose 1.2 million barrels last week. That build
surprised the market which had expected a 2.6 million-barrel
decrease, and contradicted preliminary industry data showing a
5.9 million barrel decline. EIA/S API/S
"A triumvirate of bearish builds in the weekly EIA reports
is adding momentum to crude's overnight price reversal as fears
of escalating tension are unwound," said Matt Smith, director of
commodity research at ClipperData, noting a big drop in refinery
runs, a rebound in imports and an easing of exports.
Iran's missile attack on U.S.-led forces in Iraq came hours
after the funeral of Soleimani, commander of the country's elite
Quds Force who was killed in a U.S. drone strike on Jan. 3.
Tehran fired more than a dozen ballistic missiles at two
Iraqi military bases hosting U.S.-led coalition personnel, the
U.S. military said.
"Iran took and concluded proportionate measures in
self-defense," Iranian Foreign Minister Mohammad Javad Zarif
said on Twitter. "We do not seek escalation or war, but will
defend ourselves against any aggression."
The United Arab Emirates' energy minister said he saw no
immediate risk to oil passing through the vital gateway of the
Strait of Hormuz. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GRAPHIC: Oil, gold prices retreat after initial surge following
Iran's attacks on U.S. forces in Iraq https://tmsnrt.rs/301pRfF
LIVE BLOG: Iran fires rockets on Iraqi air bases that host U.S.
military https://www.reuters.com/live-events/tensions-in-the-middle-east-id2917592
GRAPHIC: Iran fires missiles at U.S bases in Iraq https://tmsnrt.rs/35DS8dy
CHART: Oil prices to clear key resistances in next 2 wks for
wild bull run Asia is region most dependent on Middle East crude oil,
LNG supplies L4N29D17R
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