DTN Oil Update
Oil Steadies After Rising on Mideast Escalation Fears
VIENNA (DTN) -- Oil futures steadied Wednesday morning after jumping more than 4% in the previous trading session as the Israel-Iran war shows no signs of cooling and U.S. President Trump called for the Iranian regime's "unconditional surrender", spurring fears of U.S. involvement in the conflict.
NYMEX-traded WTI for July rose $0.50 bbl to trade near $75.34 bbl, and ICE Brent for August delivery gained $0.31 bbl to $76.76 bbl.
July RBOB gasoline futures added $0.0285 to $2.3004 gallon, and the front-month ULSD futures contract advanced $0.0206 to trade near $2.5257 gallon.
The U.S. Dollar Index softened by 0.184 points to 98.210.
Iranian officials have threatened retaliation should the United States engage militarily, raising escalation fears. The Iranian military and their regional proxies could target U.S. bases in the region in response to U.S. involvement.
Oil prices have rocketed in reaction to the conflict, but the macroeconomic backdrop remained bearish. U.S. retail sales last month were down 0.9% from April, close to twice the expected decline and the biggest monthly drop since January, Census Bureau data showed. U.S. industrial production shrank 0.2% month-on-month in May, according to the Federal Reserve Bank. The International Energy Agency, meanwhile, again downgraded their oil demand growth forecasts in their latest monthly oil report published Tuesday and noted global oil inventories "surging" last month.
Karim Bastati can be reached at Karim.Bastati@dtn.com
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