DTN Oil Update
Oil Futures Rise, Halting 4-Day Sell-Off
VIENNA (DTN) -- Oil prices rebounded Tuesday, Sept. 23, morning following four consecutive trading days of declines, as traders awaited details about revamped sanctions against Russia and the potential return of some 230,000 bpd of Iraqi oil to the market.
In crude oil, NYMEX-traded WTI for November delivery rose $0.81 to $63.09 bbl, and ICE Brent for November delivery gained $0.66 to $67.23 bbl.
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Among oil products, October RBOB gasoline futures advanced $0.0138 to $1.9920 gallon, and the front-month ULSD contract rose $0.0288 to $2.3211 gallon.
The U.S. Dollar Index was little changed at 97.28.
Oil futures have been trading in a narrow channel for the past two months and were on track for a small decline in the third quarter as oversupply concerns intensified and pushed geopolitical risks to the sideline.
Global production growth has been significantly outpacing demand growth, and output increases by OPEC and non-OPEC members alike are set to lead to swelling global inventories by year-end.
While the United States have been pressuring European Allies to step up sanctions against Russia, the economic bloc has little interest in reigniting inflationary pressures by all too severely stymieing Russian oil flows.
The EU's newest sanctions package, expected in the coming days, will add more than 100 tankers to its sanctioned vessels list as part of Russia's so-called shadow fleet.
Details have yet to emerge, but early reports suggested the economic block will refrain from implementing broad secondary sanctions against buyers of Russian oil, instead targeting specific entities across India and China.
The sanctions will reportedly affect about a dozen Chinese and several Indian companies, mostly refiners and shippers.
