DTN Oil Update
Oil Rises on Week Despite Weight of New US Tariffs
SECAUCUS, N.J (DTN) -- Oil and product futures slid Friday as energy futures markets responded to the latest import tariffs by the Trump administration that could crimp global trade. For the week though, crude to distillate prices rose, extending their multiweek gains on continued escalation in the Middle East conflict.
NYMEX WTI crude for September delivery fell $2.88 to settle at $89.31 barrel (bbl). On ICE, Brent for September closed down $3.91 at $96.78 bbl.
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Those drops came after the Trump administration announced on Thursday fresh tariffs to replace the expiring ones knocked down by the U.S. Supreme Court in February. The new duties ranging from 10% to 12.5% amplified concerns on economic growth and additional inflationary pressure that could make interest rate cuts less likely.
For the week, both WTI climbed about 8% while Brent rose almost 10% each. The U.S. crude benchmark posted a third consecutive week of gains, hitting a two-month high of $87.01 bbl Thursday. The global indicator for crude fourth rose for a fourth straight week, peaking at $102 bbl in the prior session.
Downstream on NYMEX, ULSD futures for August delivery slumped $0.1610 to settle at 4.1806 gallon, while August RBOB retreated $1.374 to close at $3.3959.
For the week, futures of ULSD rose 3% while those for gasoline were virtually flat.
The U.S. Dollar Index edged higher by 0.024 points to 101.310 against a basket of currencies.
The weekly surge in crude and product pricing came after attacks on Saudi tankers by Iran's allies in Yemen that threatened to disrupt supply rerouted from the locked-in Persian Gulf to Saudi Arabia's Red Sea port of Yanbu.
Supply disruptions are also mounting outside of the Middle East. Ukrainian drone attacks on tankers loading in the Russian Black Sea port of Novorossiysk forced shut loading operations of Kazakh oil, affecting some 1.2 million to 1.5 million barrels per day (bpd) in exports. The longer those operations stay idle, the more Caspian Sea production will likely be curbed, given the lack of alternative takeaway options and limited storage capacity.