DTN Oil Update
Crude Oil Futures Jump Over $1 Following Bessent's Remarks
HOUSTON (DTN) -- Crude oil futures climbed over $1 on Tuesday after the U.S. Treasury Secretary Scott Bessent anticipated a de-escalation in the trade war between the United States and China.
The NYMEX WTI futures contract for May delivery rose by $1.23 to $64.31 bbl, while ICE Brent for June delivery gained $1.02 to $67.28. Front month WTI and Brent contracts were down $0.58 and $0.93 from the start of the week, respectively.
May RBOB gasoline futures climbed $0.0304 to $2.0957 gallon, while the front-month ULSD futures contract rose by $0.0390 to $2.1479 gallon.
The U.S. Dollar Index recovered from losses recorded in previous trading sessions, climbing by 0.696 points to 98.740.
According to AP, Bessent said Tuesday that the ongoing tariffs showdown against China is unsustainable. The Trump administration has levied a total of 145% trade tariff on imported Chinese goods, but China has responded with retaliatory 125% taxes on imports from the U.S.
Separately, the International Monetary Fund (IMF) predicted that global growth is expected to decline "reflecting effective tariff rates to levels not seen in a century and a highly unpredictable environment," according to its World Economic Outlook released Tuesday morning. The IMF also anticipates global inflation to decline at a slower rate reaching 4.3% in 2025 and 3.6 % in 2026.
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