DTN Oil Update
Oil Edges Up on Renewed Concern Over Russia Sanctions
SECAUCUS, NJ (DTN) -- Oil futures edged higher in late Thursday (10/30) trading, driven by renewed concerns over the impact of Russian sanctions on supply, even as a weekend meeting of OPEC could potentially result in a production hike by the group.
The NYMEX WTI contract for December delivery settled up $0.09 at $60.57 barrel (bbl). ICE Brent for December delivery closed up $0.08 at $65 bbl.
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Front-month ULSD futures eased by $0.0217 to $2.4460 gallon while November RBOB gasoline futures slipped $0.0263 to $2 gallon.
The U.S. Dollar Index rose 0.293 points to 99.31 against a basket of foreign currencies, after hitting a mid-October high of 99.55.
Renewed concerns over U.S. sanctions on Russia helped oil markets retrace losses from the morning that were pressured by the dollar's rise to a two-week high.
"There are reports about Indian refiners feeling squeezed by the U.S. sanctions on Russia and that's giving some support to the market," a trader told DTN.
Bloomberg reported on Thursday there were signs Indian refiners were reducing their buying of Russian crude, following the U.S. Treasury Department (USDT)'s additional sanctions last week against Russian energy firms Rosneft and Lukoil. Some Indian refineries had already paused such purchases, the report added.
The USDT announced on October 23 it had frozen all property and interests related to Rosneft and Lukoil that were in the U.S. or in the possession or control of U.S. persons.
Oil prices came under pressure earlier on Thursday as the dollar rallied. The U.S currency rose in reaction to President Donald Trump's announcement, after talks with Chinese President Xi Jinping in South Korea, that overall U.S. tariffs on Chinese goods would drop by 10%, due to progress on soybean imports, rare earths and fentanyl issues.
But neither Trump nor Xi provided any assurances about additional Chinese demand for U.S. oil.
China, the second largest destination for U.S. petroleum exports in 2023, has cut back on U.S. crude purchases this year amid higher tariffs, U.S. Energy Information Administration data showed.