DTN Oil Update

Karim Bastati
DTN Analyst

VIENNA (DTN) -- Oil futures steadied Wednesday morning after two days of gains as supply disruptions were offset by bearish economic data and raised OPEC production targets.

NYMEX-traded WTI for July delivery was up $0.04 bbl to trade near $63.45 bbl, and ICE Brent for August delivery rose $0.02 bbl to $65.65 bbl.

July RBOB gasoline futures slid $0.0086 to $2.0702 gallon, while the front-month ULSD futures contract gained $0.0039 to $2.1038 gallon.

The U.S. Dollar Index strengthened by 0.026 points to 99.185.

This week's macroeconomic data releases reinforced bearish demand growth outlooks. The U.S. ISM manufacturing PMI for May, released on Monday, remained in contraction territory for the third month in a row, and at 48.5, it was the lowest reading since February. The Caixin manufacturing PMI similarly showed China's manufacturing sector last month contracting at the fastest rate in two and a half years, and for the first time since September.

On Tuesday, the Organization for Economic Cooperation and Development cut growth forecasts for both the U.S. and global economy. U.S. GDP is expected to grow 1.6% this year, compared to 2.8% in 2024. Globally, economic growth is projected to slow to 2.9% this year, compared to 3.3% last year. The forecasts have been revised lower from March by 0.6 and 0.2 percentage points, respectively.