DTN Oil Update
Oil Gains on Tariff Exemptions, USD Slips Further
VIENNA (DTN) -- Oil futures inched higher Monday morning, in part supported by tariff exemptions on certain electronic goods imports from China announced Friday. Gains were kept in check by indirect negotiations between Iran and the United States over the weekend and a broader underlying bearish sentiment amplified by the Sino-American trade war.
The front-month NYMEX WTI crude contract rose by $0.58 to $62.16 barrel (bbl) while the ICE Brent futures contract for June delivery gained $0.59 to $65.41 bbl.
May RBOB gasoline futures increased by $0.0347 to $2.0371 gallon. The front-month ULSD futures contract rose by $0.0296 to $2.0974 gallon.
In contrast, the U.S. Dollar Index continued its downward slide, falling by 0.622 points to 99.270.
On Friday, the White House exempted electronics from the 125% import tax on Chinese imports. President Trump on Sunday clarified that these would still be subject to the initial 20% tariff.
The IEA's and OPEC's April oil market reports, scheduled for release this week, will be the first by these forecasting agencies to likely incorporate the new reality of global trade restrictions and stymied GDP growth.