DTN Oil Update
Oil Futures Drop Amid Oversupply Expectations
HOUSTON (DTN)-- Oil futures dropped to close the week Friday amid slow trading activity ahead the Labor Day holiday and expectations of ample supplies as the main driving season in the U.S. comes to an end.
As global demand growth has remained weak in combination with abundant oil supplies from increasing crude production from OPEC+ countries -- including Saudi Arabia, Iraq, Kuwait, Russia, the UAE, Algeria, Oman and Kazakhstan -- oil prices have been on track for the first monthly loss since April.
U.S. sanctions on Russian oil trade, including secondary sanctions on buyers of Russian oil, remained one of the few bullish risk factors in an otherwise bearish market. The Trump administration this week imposed a 25% additional tariff on imports from India in response to the country's purchases of Russian crude oil. However, these measures have had little measurable impact on global supply.
The NYMEX WTI futures contract for October delivery dropped by $0.59 to $64.01 barrel (bbl) while the front-month ICE Brent for October delivery fell by $0.50 to $68.12 bbl.
September RBOB gasoline futures declined by $0.0115 to $2.1876 gallon, while the front-month ULSD contract retreated by $0.0431 to $2.2667 gallon.
The U.S. Dollar Index dropped by 0.018 points to 97.720 against a basket of foreign currencies.
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