DTN Oil Update

Karim Bastati
DTN Analyst

VIENNA (DTN) -- Oil futures extended losses Tuesday morning after Israel agreed to U.S. President Trump's ceasefire proposal. Oil prices plunged after Iran's largely performative strike on a U.S. base in Qatar Monday, which reportedly came with a two-hour notice, alleviating escalation fears.

NYMEX-traded WTI for August dropped $2.72 bbl to trade near $65.79 bbl, and ICE Brent for August delivery fell $2.83 bbl to $68.65 bbl.

July RBOB gasoline futures slid $0.0723 to $2.1459 gallon, and the front-month ULSD futures contract plunged $0.1001 to trade near $2.2630 gallon.

The U.S. Dollar Index softened 0.410 points to 97.600.

U.S. President Trump on Monday said that the Iranian strike on the U.S. base in Qatar does not call for a military response, and shortly after announced that Israel and Iran have reached a ceasefire agreement, obliterating the geopolitical risk-premium that has propelled oil prices to a five-month high over the past two weeks. On Tuesday, Israel confirmed the ceasefire but launched strikes on Teheran in response to an alleged violation of the agreement. Analysts were expecting a limited and largely symbolic strike given Israeli Prime Minister Netanyahu's statement on Tuesday that Israel had achieved its primary war target.