DTN Oil Update
Crude Oil Futures Rose, Despite Tariff Concerns and Ample Supply
HOUSTON (DTN) -- Front-month NYMEX WTI and ICE Brent crude future contracts settled higher to close the week on Friday but recorded a $2 loss compared to the previous week, amid trade tariff uncertainty and despite ample supply fundamentals due to high U.S. crude inventory levels seen last week.
The NYMEX WTI futures contracts for April delivery rose by $0.70 to $67.06. RBOB futures contract for April delivery rose by $0.0066 to $2.1078 gallon and the April ULSD futures contract fell by $0.0087 to $2.2151 gallon.
The U.S. Dollar Index fell by 0.24% to 103.79 against a basket of foreign currencies.
Despite the gains recorded Friday, the oil futures market remains under downward pressure due to an uncertain outlook surrounding the implementation of trade tariffs on China, Canada and Mexico -- the main trade partners of the United States.
Thursday, the Trump administration put a one-month pause on additional trade tariffs levied on some imported goods from Canada and Mexico, which were schedule to go into effect this week. The pause on trade tariffs excluded the additional 10% tariff levied on China on March 5. The United States has implemented a 20% tax on imported goods from China to date.
On domestic economic data, the Bureau of Labor Statistics Friday morning reported total non-farm payroll employment rose by 151,000 in February, below market expectations of an increase of 170,000. The data shows the unemployment rate at 4.1%, up by 0.1% from January, and the number of unemployed jumped by 203,000 to 7.1 million.
In February, average hourly earnings were up by 10 cents or 0.3% from January to $35.93 for all employees on private payrolls, in line with market expectations.
"This report is modestly softer than expected, but in general the labor market remains in decent shape and suggests no pressing need for further imminent support via Federal Reserve interest rate cuts," James Knightley, chief international economist for ING Research, said in a note Friday.
