DTN Oil Update
Oil Futures Climb Amid Russia Supply Risk
HOUSTON (DTN) -- Oil futures prices rose on Tuesday, Sept. 16, on expectations of tighter global supplies after Ukrainian attacked one of Russia's largest refineries with drones over the weekend.
The front-month NYMEX WTI futures contract climbed by $1.68 to trade near $64.58 bbl, and ICE Brent futures contract for November delivery rose by $1.07 to $68.51 bbl.
October RBOB gasoline futures edged up $0.0287 to $2.0421 gallon, and the front-month ULSD contract was up $0.0647 to $2.3958 gallon.
The U.S. Dollar Index softened by 0.610 points to 96.290 against a basket of foreign currencies.
On Monday, Sept. 15, the European Union indefinitely postponed a vote on the 19th sanctions package against Russia to allow for closer coordination with G-7 partners, according to media reports. The revised package may include secondary sanctions on buyers of Russian oil, a key U.S. demand and condition for imposing additional U.S. sanctions.
Over the weekend, U.S. President Donald Trump threatened to impose fresh sanctions on Russian oil trade and additional tariffs on imports from major buyers of Russian oil, such as India and China, conditional on NATO and EU countries halting all oil purchases from Russia.
Market participants are now focus on the two-day Federal Open Market Committee (FOMC) meeting that began Tuesday. According to CME Group's FedWatch Tool, 96% of investors are expecting a 25-basis-point cut on Wednesday, with the remaining 4% betting on a 50-basis-point cut. Lower borrowing costs are set to support oil demand, even as the global market faces a looming crude oil overhang in the months ahead.
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