DTN Oil Update
Oil Futures Rebound on Economic Optimism
DAVENPORT, Fla. (DTN) -- Oil futures rebounded on Thursday, with crude contracts snapping a four-session losing streak, while refined products ended the session lower. Traders weighed improved U.S. labor market data against continued weakness in product crack spreads and cautious sentiment on global trade.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
The front-month NYMEX WTI futures contract rose by $0.78 to $66.03 bbl, while September ICE Brent futures contract advanced by $0.71 to $69.22 bbl.
In contrast, August RBOB gasoline futures fell by $0.0171 to $2.1042 gallon, while the front-month ULSD futures contract dropped $0.0361 to $2.4129 gallon.
The U.S. dollar strengthened by 0.162 points to 97.015 against a basket of foreign currencies.
The diesel crack spread, which had reached a 2025 high of $38.19 bbl earlier this week, was down about $4 on Thursday to a still strong $34.08 bbl. ULSD backwardation remained firm, with front-month values holding near $2.43 gallon after touching highs near $0.05 earlier this year.
The gasoline crack also eased, down more than $2 from recent highs. After trading near $24.60 bbl earlier in the week, the spread slipped to $22.20 bbl by Thursday's close.
On the economic front, the Department of Labor reported that initial jobless claims fell to 217,000 in the week ended July 19, below expectations for 227,000 and down 4,000 from the prior week. The better-than-forecast number added some support to broader market sentiment.
Meanwhile, hopes that negotiations between the U.S. and European Union might result in a trade agreement brought a degree of cautious optimism to the market, though no deal has been finalized. Traders remain attentive to developments ahead of the Aug. 1 tariff deadline.
