DTN Oil Update
Oil Sinks in Broader Selloff Amid Fed Independence Woes
VIENNA (DTN) -- Oil prices reversed course after four days of gains as part of a wider selloff triggered by U.S. President Trump attempting to remove and replace a Federal Reserve Board of Governors member, adding to concerns over the Federal Reserve Bank's political independence.
NYMEX-traded WTI for October delivery fell $1.06 to trade near $63.74 per barrel (bbl), and ICE Brent for October delivery dropped $1.03 to $67.77 bbl.
September RBOB gasoline futures slid $0.0212 to $2.1271 per gallon, and the front-month ULSD contract retreated $0.0332 to $2.3143 per gallon.
The U.S. Dollar Index softened by 0.203 points to 98.115.
Oil futures relinquished all gains from Monday's session, which were driven by Russian supply woes and rate cut optimism. On Friday, Federal Reserve Bank Chairman Jerome Powell signaled a return to interest rate cuts, perhaps as early as at the next FOMC meeting in September.
On Monday, the Department of Homeland Security published a draft notice calling for a 50% tariff on U.S. goods imports from India, to come into effect Wednesday. The doubling of tariffs on imports from India was directly tied to the country's purchases of Russian oil. Over the past three years, Indian refiners have become the main buyers of shunned Russian crude oil at steep discounts.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]