DTN Oil Update
Oil Futures Fall as Markets Focus on US-China Summit
HOUSTON (DTN) -- Oil futures edged down for a second consecutive day on Thursday, amid the ongoing impasse in the Iran conflict and markets monitored developments surrounding the U.S.-China summit.
The front-month NYMEX WTI futures contract fell $0.06 to $100.96 bbl, rebounding from from $99.39 earlier in the session, while the July ICE Brent futures contract dropped $0.27 to $105.36 bbl.
June RBOB gasoline futures fell $0.0508 to $3.9083 gallon, the front-month ULSD contract decreased $0.0584 to $3.9083 gallon.
The U.S. Dollar Index strengthened 0.720 points to 98.495 against a basket of currencies.
During their first meeting Wednesday, May 13, U.S. President Donald Trump and Chinese President Xi Jinping agreed that the Strait of Hormuz must remain open. China, one of the largest buyers of Iranian crude, has been affected by the disruption of this key waterway for oil and natural gas.
Despite more than a year of trade tensions between the U.S. and China, Xi told Trump that "the Taiwan question is the most important issue in China-U.S. relations," according to comments cited by the Associated Press from Chinese Foreign Ministry spokesperson Mao Ning.
Meanwhile, oil futures appeared to shrug off bullish U.S. inventories data released Wednesday by the Energy Information Administration. Commercial crude inventories fell for a third consecutive week by 4.3 million bbl to 452.9 million bbl in the week ended May 8, and gasoline stockpiles dipped to a nearly six-month low.
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