DTN Oil Update
Oil Steadies, on Track for Largest Weekly Gain Since July
VIENNA (DTN) -- Oil prices steadied Friday morning but were on track for the first weekly gain in three weeks and the largest since early July. A sizable decline in U.S. crude oil inventories and fading hopes for a quick resolution to the Russo-Ukrainian war supported prices this week.
NYMEX-traded WTI for October delivery rose $0.13 to trade near $63.65 bbl, and ICE Brent for October delivery gained $0.06 to $67.73 bbl.
September RBOB gasoline futures dipped $0.0005 to $2.1592 gal, and the front-month ULSD contract fell $0.0073 to $2.3178 gal.
The U.S. Dollar Index strengthened by 0.029 points to 98.540.
Last weeks' 6 million bbl decline in domestic crude oil inventories, reported by the Energy Information Administration Wednesday, hinted at a tighter-than-expected market balance in the near term. A large 2.7 million bbl draw to U.S. gasoline stocks helped to cement this picture.
Market participants are now less confident about a quick resolution to the war in Ukraine, reducing bearish pressure. Ahead of last Friday's meeting, U.S. President Donald Trump warned of "severe consequences" should his Russian counterpart not agree to a ceasefire deal. The President, who has since relativized the importance of a ceasefire, calling it "not necessary" to achieve a peace deal, is aiming for a trilateral summit between the U.S., Russia and Ukraine. So far, however, the Kremlin has not confirmed participation in such an event.
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