DTN Oil Update
Oil Futures Jump on Inflation and OPEC's Monthly Report
HOUSTON (DTN) -- Oil futures settled higher Wednesday, driven by a lower-than-expected inflation increase in February compared to the previous month and after OPEC kept its forecast of oil demand growth for this year unchanged month-over-month.
The NYMEX WTI futures contract for April delivery rose by $1.46 to $67.71 bbl while the ICE Brent futures contract for May delivery climbed by $1.44 to $71.00 bbl. The April RBOB futures contract rose $0.0470 to $2.1520 gallon, while April ULSD futures rose $0.0105 to $2.1520 gallon.
The U.S. Dollar Index increased by 0.31% to 103.5 against a basket of foreign currencies.
The U.S. Bureau of Labor Statistics reported Wednesday morning that the U.S. consumer price index rose 0.2% in February, after an increase of 0.2% in January, bringing the annualized rate of inflation for the all-items index to 2.8%. The data was below market expectations of a 3% rise.
The energy index rose 0.2 % over the month, driven by an increase in the electricity and natural gas indexes, despite a decline in the gasoline index. The food index rose 0.2% in February, unchanged from the previous month, according to the BLS data.
Although inflation data for February was lower than the increase recorded in January, oil futures market continue under pressure due to the uncertainty generated by the trade tariff war and the potential slowdown of the U.S. economy.
Separately, the Organization of the Petroleum Exporting Countries maintained its global oil demand growth forecast for 2025 at 1.4 million bpd, unchanged from February, according to its Monthly Oil Market Report released Wednesday morning.
OPEC expects jet fuel demand to show the largest expansion year-over-year as international air traffic continues to recover and reach pre-pandemic levels, driven by strong domestic air travel in all regions.
Regarding diesel global demand, the organization anticipates that it will be driven by on-road diesel and solid industrial, construction and agricultural activities in non-OECD countries.
On March 3, the eight OPEC+ countries confirmed their December 2024 decision to proceed with a gradual and flexible output increase of 2.2 million bpd beginning April 1 while remaining adaptable to evolving conditions.
