DTN Oil Update
Oil Futures Edged Up Following UK Sanctions on Russian Oil
HOUSTON (DTN) -- Oil futures edged up to close the week on Friday, following fresh UK sanctions on Russian oil trade, and despite U.S. consumer sentiment falling to its lowest level since May.
The front-month NYMEX WTI futures contract remained slightly rose by $0.20 to $62.57 bbl, while the ICE Brent futures contract for November delivery edged up by $0.50 to $66.87 bbl.
The October RBOB gasoline contract rose by $0.0079 to $1.9872 gallon, while the front-month ULSD futures contract increased by $0.0076 to $2.2895 gallon.
The U.S. Dollar Index strengthened by 0.042 points to 97.570.
According to media reports, the UK government imposed new sanctions targeting over 70 vessels of Russia's shadow fleet carrying oil that transport Russian oil, and other 30 entities and individuals supporting Russia's war efforts.
These actions fueled expectations of tighter global oil supplies, setting a bullish tone in the oil futures market, which rebounded from losses recorded in the previous trading session. On Thursday, Sept. 11, the International Energy Agency projected a larger global oil surplus for 2025 and 2026 in its latest monthly report, compared to its August forecast.
This morning, University of Michigan's Surveys of Consumers preliminary data showed that the U.S. consumer sentiment in September fell to its lowest level since May, with the Index of Consumer Sentiment dropping to 55.4, a decrease of 4.8% from August's reading of 58.2. Market expectations were for a reading of 58. The index was down 14.7 points, or 21% year-over-year. The Index of Consumer Expectations, which reflects the economic outlook over the next 12 months, fell by 4.1 points to 51.8, a 7.3% decrease from August and down 30.4% compared to the same month last year.
Historically, consumer sentiment has shown a strong correlation with discretionary spending and gasoline demand.
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