DTN Oil Update
Oil Futures Drop Amid OPEC+ Output Rise Set for September
HOUSTON (DTN) -- Oil futures remained under downward pressure on Monday morning after OPEC+ announced over the weekend that it will increase output in September. Additionally, U.S. President Donald Trump again threatened to replace Federal Reserve Chair Jerome Powel, raising concerns about the Fed's independence and increasing uncertainty in financial markets.
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The front-month NYMEX WTI futures contract dropped by $1.24 to $60.09 bbl, while the September ICE Brent futures contract decreased by $1.13 to $68.54 bbl. The September RBOB futures contract fell by $0.0220 to $2.0966 gallon, while the ULSD futures contract for September delivery declined by $0.0080 to $2.2919 gallon.
The U.S. dollar continued its downward trend, falling by 0.495 points to 98.435 against a basket of foreign currencies.
On Sunday, Aug. 3, eight OPEC+ countries agreed to increase output by 547,000 bpd for September, in addition to the 548,000 bpd rise for August and 411,000 bpd output increase set in July. Plentiful supplies, coupled with weak global demand due to the ongoing tariff war, are expected to maintain oil futures under downward pressure.
Separately, President Trump reignited his attacks on the Federal Reserve and its chairman, Jerome Powell, demanding that he cut interest rates rather than keep them unchanged. Trump is schedule to appoint a new commissioner for the Bureau of Labor Statistics (BLS) in the next days, after firing former commissioner Erika McEntarffer last week following the release of softer labor data for July.
The U.S. employers added 73,000 jobs in July, according to the BLS report last week. The figure was well below the market expectation of 115,000 jobs added.
