DTN Oil Update
Oil Futures Mixed, Despite CCI Pulling Back in December
HOUSTON (DTN) -- Oil futures prices were mixed on Monday, despite the Consumer Confidence Index pulling back in December compared to the prior month on concerns of weak future business conditions and the expectation that tariffs will increase the cost of living in 2025.
The Conference Board Consumer Confidence Index dropped to 104.7 in December from a revised figure of 112.8 reported in November, and it was below market expectations of 113.
The data reinforced the bearish sentiment the market has seen since last week, when the Federal Reserve confirmed that inflationary pressures will continue in 2025, coupled with expectations of weak demand driven mainly by China.
"The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years," said Dana M. Peterson, chief economist at The Conference Board.
Compared to November, consumers in December were substantially less optimistic about future business conditions and incomes, said Peterson. Mentions of tariffs increased in December showing that 46% of U.S. consumers expect tariffs to raise the cost of living while 21% expected them to create more U.S. jobs.
Last week, President-elect Donald Trump said that his administration will impose trade tariffs on European Union countries if they do not buy more U.S. oil and gas next year.
Trump has also threatened to increase tariffs on China, and its main trade partners, Mexico and Canada, in 2025. However, analysts consider that those punitive measures could harm the U.S. economy even more as consumers will have to pay higher prices on imported goods.
At 3:10 p.m. EST, the NYMEX WTI futures contract for February delivery was almost steady at $69.45 bbl compared to the previous trading session. Meanwhile, the February Brent crude contract fell $0.13 to $72.81. But in the opposite direction, January RBOB futures rose by $ 0.0025 to $1.9441 gallon while ULSD futures for January delivery fell $0.0011 to $2.2328 gallon.
Maria Eugenia Garcia can be reached at Maria.Garcia@dtn.com
