DTN Oil Update
Oil Recovers From Monday Slump, Follows Equities Higher
VIENNA (DTN) -- Oil futures rose together with equities Tuesday morning after falling 2.5% in Monday's session in a broader selloff triggered by worries over the Federal Reserve Bank's political independence and uncertainty over its future chairmanship.
NYMEX-traded WTI for May delivery rose by $1.02 to $64.10 bbl, while ICE Brent for June delivery gained $0.78 to $67.04. Front month WTI and Brent contracts were down $0.58 and $0.93 from the start of the week, respectively.
May RBOB gasoline futures were up $0.0291 to $2.0944 gallon, while the front-month ULSD futures contract rose by $0.0318 to $2.1407 gallon.
The U.S. Dollar Index gained 0.111 points to 98.155.
The move in oil prices so far this week was closely aligned with equities and not triggered by underlying market fundamentals. While calendar spreads are hinting at tighter physical supplies in the near term, demand growth woes are still driving sentiment and leading to slashed price outlooks.
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