DTN Oil Update
Oil Prices Decline as Tariff Relief Hopes Wane
VIENNA (DTN) -- Oil futures fell Friday morning and were on track for a weekly decline. This came after China denied being engaged in any active tariff negotiations with the U.S. Comments from President Trump and Treasury Secretary Bessent hinting at trade negotiations with China had led to a short-lived rally earlier in the week.
NYMEX-traded WTI for June delivery fell by $0.54 to $62.25 bbl, and ICE Brent for June delivery dropped $0.57 to $65.98.
May RBOB gasoline futures were down $0.0010 to $2.1047 gallon, while the front-month ULSD futures contract rose $ 0.0057 to $2.1494 gallon.
The U.S. Dollar Index strengthened by 0.267 points to 99.435.
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 deal in the near future that would see lower overall tariffs. However, China may still proceed with unilaterally exempting certain goods from import duties.