DTN Oil Update
WTI Hits $57 Mark on US-China Deal Expectations
SECAUCUS, N.J. (DTN) -- Oil prices edged higher on Tuesday, Oct. 21, supported by a potential U.S.-China trade agreement in the coming days, despite concerns of a looming oil glut.
The NYMEX WTI crude futures contract for November delivery rose $0.30 to $57.82 bbl, while ICE Brent for December delivery climbed $0.42 to $61.43 bbl. Prices rebounded after three consecutive weeks of losses in WTI and Brent, largely due to increasing crude oil inventories.
The front-month ULSD futures contract rose $0.0154 to $2.2075 gallon.
In contrast, November RBOB gasoline futures were down $0.0026 to $1.8276 gallon driven by weak driving seasonal demand.
The U.S. Dollar Index edged higher by 0.345 points to 98.7 against a basket of foreign currencies.
On Tuesday, U.S. President Donald Trump stated that he wanted a "good deal" for both the U.S. and China. The Trump-Xi summit has been planned on the sidelines of the Asia-Pacific Economic Cooperation summit, scheduled from Oct. 31 to Nov. 1.
However, the meeting's fate remains unclear due to recent escalating trade tensions. Last week, China restricted exports of rare earth metals and other technologies to the U.S. So far this year, the Trump administration has imposed total tariffs of around 50% on Chinese goods. China has retaliated with duties averaging just over 30% on U.S. imports, significantly impacting sectors such as energy and agriculture.
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