DTN Oil Update
Oil Futures Tumble as Russia Seen Defying Sanctions
SECAUCUS, NJ (DTN) -- ULSD, gasoline and crude oil futures contracts tumbled Monday (12/8) amid expectations of abundant global supply, as Russia works to circumvent U.S. sanctions on its oil trade.
Washington's efforts to rein in Russia over the Ukraine war, which could officially end the sanctions along with the nearly four-year conflict, were seeing little progress, traders noted.
Russian President Vladimir Putin visited New Delhi last week, where he pledged "uninterrupted shipments" of fuel from his country to India. The visit came at a critical time for energy traders, who were closely watching the impact of the sanctions on Russian oil in a market the Organization of the Petroleum Exporting Countries estimated was already oversupplied by 500,000 bpd as of the third quarter.
Russia has rejected any U.S.-backed peace deal for Ukraine that fails to meet its terms. U.S. President Donald Trump also expressed disappointment over the weekend with Ukrainian President Volodymyr Zelenskiy's handling of the White House-driven peace initiative.
Separately, the third straight U.S. rate cut of 25 basis points that the Federal Reserve is widely expected to deliver on Wednesday (12/10) did not help Monday's energy markets, which swooned after a three-day run-up last week.
The NYMEX WTI futures contract for January delivery dipped $0.88 to $59.204 bbl, while ICE Brent for February shipments slid $0.86 to $62.89 bbl.
The NYMEX front-month ULSD futures dipped $0.0398 to $2.3231 per gallon. The RBOB futures contract fell $0.0254 to $1.8087 per gallon.
The U.S. Dollar Index dropped by 0.033 to 98.935 against a basket of foreign currencies.
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