DTN Oil Update
WTI at $58 as Oil Stays Weak on Supply, Trade Woes
SECAUCUS, N.J. (DTN) -- Oil futures fell in sluggish trade for a second straight day on Wednesday, Oct. 15, as an intensifying U.S.-China trade battle and fears of oversupply continued to weigh on key crude benchmarks.
U.S. Trade Representative Jamieson Greer labeled China's recent restrictions on rare earths exports as a "global supply chain power grab."
Bank of America, meanwhile, cautioned that Brent could slip beneath $50 bbl if U.S.-China trade tensions worsened and OPEC+ production continued to ramp up.
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NYMEX-traded WTI crude for November delivery settled down by $0.43 at $58.27 bbl, while ICE Brent for December delivery dipped by $0.35 to $62.04 bbl.
In the downstream sector, gasoline prices bucked the lower trend, with November RBOB gasoline climbing by $0.0096 to $1.8382 gallon.
Front-month ULSD futures gave back gains from earlier in the day, falling by $0.0186 to trade at $2.1790 gallon.
The U.S. Dollar Index softened by 0.270 points to 98.54 against a basket of foreign currencies.
Market participants are awaiting the delayed publication of the Energy Information Administration's Weekly Petroleum Status Report on Thursday, Oct. 16, due to the Columbus Day federal holiday on Monday, Oct. 13.
The American Petroleum Institute will issue later today its own weekly oil supply-demand data, also delayed for a day due to the holiday.
Since recovering briefly from the five-month lows of last week, WTI and Brent have been trading weakly and in a tight range on persistent worries of oversupply.
The International Energy Administration warned on Tuesday that the global oil market could be in a record glut of 4 million by next year as producer alliance OPEC+ continues to pump more than needed while and demand remains sluggish.
The trade dispute between the United States and China -- the world's two largest oil consumers -- is, meanwhile, threatening to disrupt global freight flows after both nations imposed additional port fees on ships carrying cargo between them.