DTN Oil Update
Oil Futures Rebound, Despite Trade Tariff Uncertainty
HOUSTON (DTN) --â?¯Oil futures reversed losses Tuesday after a steep decline seen in the previous trading session, amid concerns about inflationary pressures in the U.S. economy due to trade tariffs the Trump administration plans to impose on multiple countries.
The March NYMEX WTI futures contract for March delivery rose by $0.93 to $74.10 barrel (bbl), while the front-month ICE Brent futures contract rose by $0.90 to $77.98 bbl.
The Trump administration has targeted a 10% or 60% trade tariff on imported goods from China, and 25% imports from Mexico and Canada.
But an escalation of consumer prices is anticipated due to higher trade tariffs, which could prompt the Federal Reserve to consider additional interest rate cuts this year.
In the opposite direction, the U.S. dollar is expected to benefit from Trump's tariffs policy. This morning the U.S. Dollar Index rose 0.60% to 107.755
Downstream, February RBOB futures contract rose by $0.250 to $2.0532 gallon while the ULSD futures contract for February delivery increased by $0.0217 to $2.4817 gallon.
The national average for retail regular gasoline eased off to a 13-week high, down 0.6 cent to $3.103 gallon as of Monday, Jan. 27, 0.8 cent more than the corresponding week in 2024, according to data released by the Energy Information Administration.
EIA reported the East Coast PADD 1 price held higher, up 0.7 cent to a 19-week high $3.076 gallon while the Gulf Coast PADD 3 added 0.5 cent to a 14-week high $2.696 gallon.
Separately, the U.S. average on-highway diesel fuel price dropped from a 24-week high, sliding 5.6 cents to $3.659 gallon as of Monday, EIA data showed.
The price, which fell for the first time in five weeks, was 20.8 cents lower than the same week of 2024. Prices fell across the major PADDs, with losses ranging from 1.5 cents to 8.0 cents on the week, EIA said.
Maria Eugenia Garcia can be reached at Maria.Garcia@dtn.com