Oil Prices Reverse Course, WTI Slides Below $63/bbl


   
Karim Bastati
DTN Analyst

   VIENNA (DTN) -- Oil futures slid Wednesday morning, erasing most of 
yesterday's 2% gain which followed the U.S. Treasury striking a softer tone on 
the trade war with China and targeting Iranian energy flows with additional 
sanctions.

   NYMEX-traded WTI for May delivery fell by $0.77 to $62.90 bbl, while ICE 
Brent for June delivery dropped $0.79 to $66.65.

   May RBOB gasoline futures were down $0.0074 to $2.0922 gallon, while the 
front-month ULSD futures contract slid by $0.0224 to $2.1262 gallon.

   The U.S. dollar index gained 0.205 points to 98.895.

   The U.S. Treasury Department on Tuesday issued additional sanctions aimed at 
crippling Iranian energy export revenues. Twelve companies shipping large 
quantities of LPG and crude oil were added to the existing sanctions list.

   Treasury Secretary Bessent on Tuesday called current U.S. tariffs on imports 
from China "unsustainable", and President Trump hinted at lower tariffs in the 
foreseeable. The bullish effect of these statements and of the fresh sanctions 
was short-lived, with front-month WTI dropping below $63/bbl Wednesday morning.




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