DTN Oil Update
ULSD Futures Hit 1-Month Low; Brent Falls $2 on Tariffs
HOUSTON (DTN) -- Oil futures dipped to close the week on Friday following the announcement of new tariffs imposed by the United States on some trading partners, expectations of ample supplies from OPEC+ output increase, and reports of a slight increase in U.S. unemployment data in July.
The front-month NYMEX WTI futures contract dropped by $1.97 to $67.29 bbl, while the September ICE Brent futures contract decreased by $2.13 to $69.57 bbl. The September RBOB futures contract fell by $0.0599 to $2.1140 gallon, while the ULSD futures contract for September delivery dropped by $0.1031 to $2.29281 gallon, the lowest level since July 1, according to DTN Energy data.
The U.S. dollar dropped by 0.923 points to 98.820 against a basket of foreign currencies.
On Thursday, July 31, U.S. President Donald Trump signed an executive order to impose new punitive tariffs ranging from 10% to 40% on multiple nations to be effective on Aug. 7, after a 90-day pause announced in April. Mexico and China remain pending.
The announcement of these new tariffs weakened the U.S. dollar and analyst have anticipated that the trade war lead by the Trump administration could potentially affect global economic growth and add inflationary pressure to the U.S. economy.
This morning, the Bureau of Labor Statistics reported that nonfarm employment growth in the United States in July rose by 73,000, below market expectations for job gains around 150,000, and reflecting ongoing softness in labor demand since April.
The U.S. unemployment rate was unchanged at 4.2% in July, holding in a 4.0% to 4.2% range since May 2024.
Oil futures were also bearish on the day as OPEC+ countries -- including Saudi Arabia, Iraq, Kuwait, Russia, the UAE, Algeria, Oman and Kazakhstan -- were schedule to increase their crude output by 548,000 bpd starting today, in addition to their 411,000-bpd output increase set in July.
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