DTN Oil Update
Oil Futures Slump on US-EU Trade War Escalation
VIENNA (DTN) -- Oil futures plunged Friday morning after U.S. President Trump lamented the lack of progress in trade talks with EU representatives and suggested a 50% tariff on imports from the European Union. The comments added to bearish market sentiment fueled by reports of another sizable OPEC+ production hike in July, and a second consecutive weekly surprise build to U.S. oil inventories.
NYMEX-traded WTI for July delivery was down $0.84 barrel (bbl) to trade near $60.36 bbl, and ICE Brent for July delivery fell $0.79 bbl to $63.65 bbl.
June RBOB gasoline futures shed $0.0139 to $2.1173 gallon, while the front-month ULSD futures contract was down $0.0241 to $2.0934 gallon.
The U.S. Dollar Index softened by 0.499 points to 99.350.
President Trump on Friday commented on the ongoing trade negotiations with the European Union, saying, "our discussions with them are going nowhere" and suggesting a 50% tariff on imports starting June 1. Prior to the president's comments, oversupply concerns had already put oil futures on track for the first weekly decline this month. The lack of progress in trade talks, the U.S. and Iran entering the fifth round of negotiations and swelling U.S. inventories all pressured prices lower, while OPEC's shift in strategy from defending price to regaining market share exacerbated oil glut woes.
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