DTN Oil Update
Oil Prices Steady Ahead of OPEC+ Meeting, US GDP
VIENNA (DTN) -- Oil futures steadied Tuesday morning as the market digested developments in U.S.-EU trade negotiations ahead of the next OPEC+ meeting to decide supply policy for July. Oil prices have stabilized around current levels after zigzagging on Friday on news of a 50% tariff threat on U.S. imports from the EU and a subsequently announced extension of trade talks.
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NYMEX-traded WTI for July delivery was down $0.34 bbl to trade near $61.19 bbl, and ICE Brent for July delivery fell $0.28 bbl to $64.46 bbl.
June RBOB gasoline futures gained $0.0014 to $2.1106 gallon, while the front-month ULSD futures contract was down $0.0056 to $2.0992 gallon.
The U.S. Dollar Index strengthened by 0.255 points to 99.265.
A trade war induced stunting of demand growth hasn't been the only bearish factor weighing on prices these past few months. The Organization of Petroleum Exporting Countries and its allies have seemingly shifted strategy from defending price to regaining market share and are reportedly planning a third large output increase for July, exacerbating global oil glut concerns.
Market participants are also awaiting the second estimate for first quarter U.S. GDP growth to be released Thursday by the Bureau of Economic Analysis. The first of three estimates released last month showed the U.S. economy surprisingly shrinking, with GDP growth slipping to negative 0.3% quarter-on-quarter in 1Q 2025, down from 2.4% in 4Q 2024.