DTN Oil Update
Oil Prices Steady Near Pre-War Levels
VIENNA (DTN) -- Oil futures were mixed Wednesday morning, having shed the geopolitical risk premium tied to the Israel-Iran war which sent prices rocketing over the past two weeks. Both countries have so far largely adhered to the ceasefire, easing supply concerns.
NYMEX-traded WTI for August rose $0.20 barrel (bbl) to trade near $64.57 bbl, and ICE Brent for August delivery gained $0.21 bbl to $67.35 bbl.
July RBOB gasoline futures slid $0.0018 to $2.0839 gallon, while the front-month ULSD futures contract added $0.0089 to trade near $2.2940 gallon.
The U.S. Dollar Index gained 0.280 points to 97.730.
Prices were also pressured by U.S. President Trump saying, "China can now continue to buy oil from Iran." The statement stood in stark contrast to the administration's tightened sanctions and ramped up sanctions' enforcement on Iranian oil and gas exports. The White House on Wednesday clarified that the sanctions would remain in place and will continue to be enforced.
Expectations of another sizable draw to U.S. crude oil inventories, meanwhile, lent some support to oil prices. The American Petroleum Institute on Tuesday reported a 4.277-million-barrel draw to commercial inventories, beating analyst expectations of a 600,000-bbl decline. Next, market participants are awaiting official inventory data from the Energy Information Administration, scheduled for 10:30 a.m. EDT release Wednesday.
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