DTN Oil Update

Karim Bastati
DTN Analyst

VIENNA (DTN) -- Oil futures rebounded Thursday morning following Chinese state media reporting of a phone call between U.S. President Donald Trump and his Chinese counterpart Xi Jinping. The conversation, the first direct contact between the two leaders since President Trump took office, sparked hopes of easing trade tensions between the U.S. and China.

NYMEX-traded WTI for July delivery was up $0.92 bbl to trade near $63.77 bbl, and ICE Brent for August delivery rose $0.83 bbl to $65.69 bbl.

July RBOB gasoline futures gained $0.0344 to $2.0684 gallon, while the front-month ULSD futures contract added $0.0325 to $2.1026 gallon.

The U.S. Dollar Index softened by 0.095 points to 98.635.

U.S. tariff policy has soured global growth outlooks over the past months, leading prices lower. On Tuesday, the Organization for Economic Cooperation and Development cut growth forecasts for both the U.S. and global economy. U.S. GDP is expected to grow 1.6% this year, compared to 2.8% in 2024. Globally, economic growth is projected to slow to 2.9% this year, compared to 3.3% last year.

Prices dropped in the previous session on reports of large builds to U.S. gasoline and diesel inventories, despite falling crude oil stocks. Commercial crude oil inventories fell by 4.3 million bbls to 436.1 million bbls last week, according to U.S. Energy Information Administration data, while gasoline and diesel inventories expanded by 5.2 and 4.2 million bbls, respectively.