DTN Oil

AUSTIN, Texas (DTN) -- Nearest delivered oil futures on the New York Mercantile Exchange and Brent crude on the Intercontinental Exchange moved higher Monday, with West Texas Intermediate and Brent reversing off fresh lows to hold above their respective 100-day moving averages at settlement as concerns over fuel demand weigh on buying interest.

Those concerns were highlighted last week by slowing job gains and a tick higher in the national unemployment rate reported Friday for April, while key indices for manufacturing and services fell into contraction last month.

Inflation pressures and an increasing belief that interest rates will stay high for longer prompted some consumers to plan on cutting back on discretionary spending, including dining out and vacations, according to the Institute of Supply Management's service sector survey for April. Historically, discretionary spending is closely tied to driving demand.

Globally, news Monday afternoon indicated the terrorist organization Hamas accepted Israeli terms for a ceasefire, potentially avoiding a major offensive by Israel in the city of Rafah. Israel indicates Rafah is the last stronghold for Hamas in Gaza and had ordered Palestinians in the city to evacuate. An Israeli offensive in Rafah could incite a broader war in the Middle East, with Houthi terrorists in southern Yemen potentially ratcheting up attacks on commercial shipping in the Red Sea. The situation remains fluid.

June WTI futures settled up $0.37 at $78.43 bbl, reversing off a $77.91 intrasession low to end above the $78.05 100-day moving average. July Brent also ended above its $83.07 100-day moving average with a $83.33 bbl settlement, up $0.37.

June RBOB reversed off a $2.5435 intrasession low to settle $0.0331 at $2.5882 gallon. June ULSD futures gained $0.0180 with a $2.4124 gallon settlement, continuing to hold support at the $2.4124 trendline for the downtrend from the April 2022 high now at $2.4124.

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