DTN Oil Update
Oil Futures Climb Despite Expectations of Ample Supply
HOUSTON (DTN) -- Oil futures rose to close the week Friday, despite expectations of ample supplies due to a potential increase in output from some OPEC+ countries, coupled with trade tensions between the United States and China.
The front-month NYMEX futures contract for June delivery edged up by $0.40 to $63.19 barrel (bbl) while ICE Brent for June delivery rose by $0.44 to $66.99.
May RBOB gasoline futures increased by $0.0187 to $2.1244 gallon, while the front-month ULSD futures contract climbed by $0.0333 to $2.1770 gallon.
The U.S. Dollar Index also rose by 0.202 points to 99.37.
Despite oil futures closing the day with gains, after a weekly steep fall seen in previous sessions, the combination of abundant global supplies and weak demand are expected to put pressure on crude prices in the short term. Kazakhstan, which produces nearly 2% of global crude output, was expected to continue increasing output, defying the OPEC+ position
Additionally, the contradictory and conflicting messaging of the Chinese and U.S. governments on the issue of tariffs has increased uncertainty and dashed hopes for a near-term deal that would lower overall tariffs.
However, China may still proceed with unilaterally exempting certain goods from import duties.
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