DTN Oil Update
Oil Futures Edge Higher Despite Ample Supply Concerns
HOUSTON (DTN) -- Oil futures edged up Monday morning despite expectations of ample supplies continuing, driven by higher-than-expected U.S. crude inventory build and the Trump administration ordering Iraq to allow the restart of Kurdish oil exports.
The front-month NYMEX WTI futures dropped by $0.98 to $72.77 barrle (bbl) while the April ICE Brent futures contract fell by $0.92 to $75.56 bbl. March RBOB futures contract fell by $0.0228 to $2.0637 gallon while ULSD futures contract for March delivery declined by $0.0454 to $2.4580 gallon.
The U.S. Dollar Index continued its upward trend by increasing 0.27% to 106.54 against a basket of foreign currencies, supported by the 10% trade tariffs imposed by the United States over imported goods from China and 25% trade tariffs on aluminum and steel from Canada and Mexico.
A combination of ample supplies and sluggish demand have set a bearish tone in the oil futures market in recent trading sessions.
Last week, the Energy Information Administration reported commercial crude oil inventory in the U.S. increased by 4.6 million bbl to 432.5 million bbl in the week ended Feb. 14, which was higher than the 3.3 million bbl build reported by American Petroleum Institute for the same week.
Gasoline stocks dropped by 200,000 bbl week-over-week to reach 247.9 million bbl while distillate fuel stocks recorded the steepest fall by dropping 2.1 million bbl to 116.6 million bbl in the same reference week, EIA data showed.
Meanwhile, U.S. President Donald Trump ordered Iraq to allow the restart of Kurdish oil exports through a pipeline running from Iraq's Kurdistan region to Turkey, which has been closed since March 2023, according to media reports.
In January, Trump requested Saudi Arabia and OPEC increase their oil production, arguing that if oil prices dropped, it would help to end the Russia-Ukraine war immediately.
