DTN Oil Update
Oil Futures Fall on Tariffs, Inflation Concerns
TACOMA, Wash. (DTN) -- Oil futures declined Friday as trade tariff uncertainty and inflation concerns pressured markets, while refined products' futures showed mixed movement amid seasonal demand shifts.
NYMEX WTI futures for March delivery fell by $0.61 to $70.68 barrel (bbl), while April ICE Brent futures declined by $0.68 to $74.29 bbl. March RBOB fell by $0.0237 to $2.0870 gallon, while ULSD futures for March delivery increased by $0.0024 to $2.4511 gallon.
The U.S. Dollar Index weakened by 0.59 points to 106.72 against a basket of foreign currencies
Oil prices came under pressure after U.S. President Donald Trump signed an executive order on Thursday, Feb. 13, initiating a 180-day review of reciprocal trade tariffs. The directive tasks officials at the U.S. Department of Commerce and the Office of the U.S. Trade Representative with analyzing trade imbalances and recommending changes. Findings are due by April 1, delaying any immediate action.
Adding to bearish sentiment, inflation data released Wednesday showed consumer prices rose 0.5% in January, bringing the annualized inflation rate to 3.0%. The increase was driven by higher energy and food costs, with gasoline prices climbing 1.2% in the month.
Retail sales fell 0.9% in January from December, marking the largest monthly drop in nearly two years, but 4.2% higher year-over-year. Analysts noted that high prices and uncertainty surrounding tariffs may have contributed to restrained consumer spending.
Despite broader losses in the energy complex, ULSD futures rose as winter heating demand continued to support diesel markets. Unlike gasoline, distillate consumption remains elevated, particularly in northern states where cold weather has boosted heating oil demand.
The EIA confirmed that the Weekly Petroleum Status Report will be released Thursday, Feb. 20, instead of its usual Wednesday schedule, due to the Presidents Day holiday on Monday.
Nicholas Bell can be reached at Nicholas.Bell@dtn.com
