DTN Oil Update
Oil Prices Reverse Course, WTI Slides Below $63/bbl
VIENNA (DTN) -- Oil futures slid Wednesday morning, erasing Tuesday's 2% gain, which followed the U.S. Treasury striking a softer tone on the trade war with China and targeting Iranian energy flows with additional sanctions.
NYMEX-traded WTI for May delivery fell by $0.77 to $62.90 bbl, while ICE Brent for June delivery dropped $0.79 to $66.65.
May RBOB gasoline futures were down $0.0074 to $2.0922 gallon, while the front-month ULSD futures contract slid by $0.0224 to $2.1262 gallon.
The U.S. Dollar Index gained 0.205 points to 98.895.
The U.S. Treasury Department on Tuesday issued additional sanctions aimed at crippling Iranian energy export revenues. Twelve companies shipping large quantities of LPG and crude oil were added to the existing sanctions list.
Treasury Secretary Bessent on Tuesday called current U.S. tariffs on imports from China "unsustainable," and President Trump hinted at lower tariffs. The bullish effect of these statements and of the fresh sanctions was short-lived, with front-month WTI dropping below $63/bbl Wednesday morning.
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