DTN Oil

CRANBURY, N.J. (DTN) -- Oil futures nearest delivery on the New York Mercantile Exchange and Brent on the Intercontinental Exchange settled Thursday's session mixed, with the ULSD contract settling at a fresh 10-month low while RBOB halted a slide after losing $0.1872 or 6.8% in value from Friday's settlement through Wednesday.

June RBOB futures settled $0.0191 higher at $2.5965 gallon, reversing off a $2.5677 seven-week low on the spot continuous chart traded overnight. The gasoline contract gave back 83% of its advance from March to April's $2.8516 gallon high with today's intrasession low.

The recent selloff in the RBOB contract follows several macroeconomic indicators showing inflation is proving stickier than previously anticipated, delaying an expected decline in interest rates. On Tuesday, The Conference Board's consumer confidence index for April weakened to the lowest point since July 2022, with consumers citing concerns over inflation and high interest rates. Most consumers surveyed said they would cut back on discretionary spending in response, which historically has had a close relationship with driving demand. Gasoline supplied to the U.S. market was down 3.6% during the four weeks ended April 26, according to data from the Energy Information Administration.

Diesel fuel continues to see sluggish demand -- down 4.3% so far this year -- amid a slowdown in the durable goods sector of the economy, with U.S. economic growth being driven by the service sector. Manufacturing activity has underperformed, and freight hauled by trucks remains depressed, with freight movements in an extended recession.

June ULSD futures settled down $0.0088 at a $2.4431 gallon 10-month low on the spot continuous chart, paring a decline to $2.4219 gallon in the session.

The crude contracts were little changed, with June West Texas Intermediate futures settling down $0.05 at $78.95 bbl, and July Brent edging $0.23 higher to settle at $83.67 bbl.

Brian L. Milne can be reached at brian.milne@dtn.com