DTN Oil Update
Oil Futures Steady as Tariff Uncertainty Persists
VIENNA (DTN) -- Oil futures steadied Monday morning amid continued uncertainty over trade negotiations. Growth concerns tied to a tariff-induced slowdown in global trade continued to weigh on sentiment. The U.S. and Iran signaling progress in ongoing nuclear talks additionally pressured oil prices.
NYMEX-traded WTI and ICE Brent for June delivery were unchanged at $63.02 barrel (bbl) and $66.87, respectively.
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May RBOB gasoline futures were down $0.0006 to $2.1183 gallon, while the front-month ULSD futures contract rose $0.0023 to $2.1696 gallon.
The U.S. Dollar Index strengthened by 0.091 points to 99.345.
The combination of abundant global supplies, particularly in the wake of OPEC's planned output hike, 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. On Sunday, U.S. Treasury Secretary Bessent denied direct tariff negotiations with his Chinese counterpart.
This week's macroeconomic data releases should provide more insight into global economic developments. U.S. and E.U. GDP data, spending and employment reports are scheduled for release, along several manufacturing PMIs.
Karim Bastati can be reached at Karim.Bastati@dtn.com
