DTN Oil Update
Oil Futures Edge Up on US-China Talks, US Dollar Down
HOUSTON (DTN) -- Oil futures edged up on Monday morning as the U.S. and China began trade talks in London Monday.
Last week, U.S. President Donald Trump and his Chinese counterpart Xi Jinping had their first direct contact in a phone call since the Trump administration imposed 10% trade tariffs on Chinese imported goods on Feb. 1 this year, which escalated to 145% early April.
On May 12, the U.S. and China agreed to reduce reciprocal tariffs by 115% in mid-May.
The front-month NYMEX WTI futures contract rose by $0.27 bbl to $64.85 bbl, while ICE Brent futures contract for August delivery rose by $0.23 bbl to $66.70 bbl.
July RBOB gasoline futures increased by $0.0099 to $2.0867 gallon, while the front-month ULSD futures contract climbed by $0.0084 to $2.1337 gallon.
In contrast, the U.S. Dollar Index dropped by 0.052 points to 99.090 against a basket of foreign currencies.
This week, market participants will focus on inflation data for May. The U.S. Consumer Price Index for April was up 0.2% month-on-month and 2.3% year-on-year, according to Bureau of Labor Statistics data. This deceleration was largely due to dropping energy prices. Market expectations for the Consumer Price Index for May forecast an increase of 0.2% from April.
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