DTN Oil Update
Oil Futures Rise Expecting Stricter Russian Oil Sanctions
HOUSTON (DTN) -- Oil futures rose Monday morning on expectations of global tight supplies due to potential stricter sanctions from the United States on Russian oil, while the market awaits the announcement of additional trade tariffs this week.
U.S. President Donald Trump threatened to impose additional sanctions on Russian oil trade as Russia's President Vladimir Putin has failed to reach an agreement with Ukraine towards a ceasefire.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
On Friday, Putin called for the removal of Ukrainian President Volodymyr Zelensky and his intention to continue the war with Ukraine, according to media reports. This is opposite to Putin's recent pledge to President Trump to pause on the attacks on energy infrastructure in Ukraine.
Additional sanctions on Russian oil, could come weeks after the Trump administration implemented stricter sanctions on Iran and Venezuela oil trade, aiming to reduce their oil exports to zero.
Meanwhile, market participants will focus this week on additional tariffs the Trump administration is expected to impose on imports from China, Canada, Mexico, and the European Union on Wednesday, April 2.
Also on Wednesday, eight OPEC+ countries (Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman) are scheduled to start a gradual increase of 2.2 million bpd in global output.
The front-month NYMEX West Texas Intermediate futures contract for May delivery advanced by $0.49 to $69.85 bbl. The May ICE Brent futures contract rose by $0.64 to $74.27 bbl. The April RBOB futures contract climbed by $0.005 to $2.2397 per gallon, while the front-month ULSD futures contract rose by $0.0183 to $2.2792 per gallon.
The U.S. Dollar Index also advanced by 0.15% to 103.86 against a basket of foreign currencies.
"We see some upside potential for the dollar this week as markets may have turned a bit too sanguine on the tariff view, and Trump has suggested over the weekend that he will impose tariffs on all countries," said Francesco Pesole, FX Strategist at ING Research, in a note.
