DTN Oil Update
Oil Futures Edged Down Amid Ample Supply Expectations
HOUSTON (DTN) -- Oil futures prices edged down at the start of the week on Monday, Oct. 20, after reaching $56.35 bbl during the day, following three consecutive weekly losses. The bearish sentiment was driven by expectations of global oversupply amid weak demand growth.
The front-month NYMEX WTI crude futures contract fell by $0.17 to $57.37 bbl while the ICE Brent crude futures contract for December delivery slid by $0.44 to $60.85 bbl.
November RBOB gasoline futures dropped by $0.0125 to $1.8285 gallon. In contrast, the front-month ULSD futures increased by $0.0052 to $2.1852 gallon.
The U.S. Dollar Index increased by 0.148 points to 98.340 against a basket of foreign currencies.
Abundant global supply expectations were supported by weak economic growth in China, the largest oil buyer in the world. On Sunday, China's National Bureau of Statistics reported that GDP grew at 4.8% year-on-year in the third quarter of 2025, below the 5.2% and 5.4% reported in the first and second quarters of this year.
High tariffs on U.S. imports of Chinese goods also have contributed to bearish demand growth outlooks for the export-dominant national economy. Trade negotiations between the U.S. and China are schedule for this week. On Friday, Oct. 17, U.S. President Donald Trump said he was optimistic about the two sides reaching a deal before the additional 100% tariff on imports from China come into effect on Nov. 1.
U.S. macroeconomic data releases from the federal government are expected to be delayed or put on halt amid the ongoing government shutdown. However, the Consumer Price Index data for September is likely to be released this week. The Bureau of Labor Statistics on its website has announced that September CPI data, originally scheduled for release Wednesday, Oct. 15, will be released on Friday, Oct. 24.
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