DTN Oil Update
Oil Futures Drop More Than $1 Amid Renewed Russia-Ukraine Attacks
HOUSTON (DTN) -- Oil futures prices settled lower on Tuesday, falling by over $1 and reversing gains recorded during the last four trading sessions.
The decline was driven by concerns about U.S. monetary policy after President Donald Trump removed Federal Reserve Governor Lisa Cook effective today. However, Cook has stated that she will not resign. President Trump has also threatened to replace Fed Chairman Jerome Powell, who last Friday signaled a return to interest rate cuts, possibly as early as the next Federal Open Market Committee (FOMC) meeting scheduled for September.
The recent exchange of attacks between Russia and Ukraine -- which signals continued willingness to reach a ceasefire deal despite recent meetings led by President Trump -- is expected to lead to additional sanctions on Russian crude trade. However, future oil prices continue facing downward pressure due to the ongoing trade war and increased output by OPEC+.
On Monday (8/25), the Department of Homeland Security published a draft notice calling for a 50% tariff on imports from India, to come into effect Wednesday. The tariff increase on imports from India was directly tied to the country's purchases of Russian oil. Over the past three years, Indian refiners have become the main buyers of shunned Russian crude oil at steep
discounts.
The NYMEX WTI futures contract for October delivery fell by $1.47 to $63.33 per barrel (bbl), and ICE Brent for October delivery dropped by $1.50 to $67.30 bbl. September RBOB gasoline futures slid by $0.0169 to $2.1314 per gallon, and the front-month ULSD contract decreased by $0.0685 to $2.2790 per gallon.
The U.S. Dollar Index fell by 0.208 points to 98.110.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
