Crude Prices Finish Sharply Higher on US Trade Deal Hopes and Iranian Oil Export Risks
Crude oil and gasoline prices rallied sharply on Thursday to 1-1/2 week highs. Optimism that the US...
Crude oil and gasoline prices rallied sharply on Thursday to 1-1/2 week highs. Optimism that the US will be able to make trade deals has reduced tariff concerns and boosted crude prices. President Trump stated that US negotiators had made “big progress” with Japanese officials on a trade deal and expressed confidence that the US would reach a trade agreement with the EU.
May WTI crude oil (CLK25) closed up +$2.21 (+3.54%) at $64.68 per barrel, while June Brent Crude (QAM25) closed up +$2.11 at $67.96 per barrel. May RBOB gasoline (RBK25) closed up +0.0554 (+2.71%) at $2.098.
The Dow Jones shed 527.16 points, or 1.3%, ending at 39,142.23, while posting a 2.7% weekly loss.
The S&P 500 ended up 7 points, or 0.1%, higher at 5,282.70, and logged a 1.5% weekly decline.
The Nasdaq Composite lost 20.71 points, or 0.1%, finishing at 16,286.45, for a 2.6% weekly drop.
Stocks wavered during the session as investors monitored trade talks between President Trump and other world leaders regarding his tariff fight. Trump's ongoing feud with Federal Reserve Chair Jerome Powell was also in focus after the central bank chief said on Wednesday that he's in no rush to cut interest rates, given the uncertain policy backdrop from the White House.
U.S. oil producers should prepare to weather a prolonged period of lower...
U.S. oil producers should prepare to weather a prolonged period of lower prices, says one of the Permian Basin’s top executives.
Oil markets are “now probably set for a period of weakness, probably more weakness than where we are today,” Diamondback Energy President Kaes Van’t Hof said April 15 at the World Oilman’s Mineral & Royalty Conference in Houston.
“I think before Liberation Day, there was a case towards being pretty bullish,” said Van’t Hof, who will transition to Diamondback’s CEO at the company’s 2025 annual meeting. On April 2, Trump levied a 10% tariff on all imported goods and additional tariffs for specific countries, which caused oil prices to fall before the president placed a 90-day pause on the taxes.
“Unfortunately, it all feels a bit self-inflicted,” he said.
Pump prices are calming down after a few weeks of increases. Crude oil...
Pump prices are calming down after a few weeks of increases. Crude oil prices have plunged to around $60 per barrel, on global economic concerns as well as an increase in production by OPEC+. These factors are putting downward pressure on pump prices at the time of year when they normally increase. For the week, the national average for regular loses seven cents to $3.17 a gallon.
Gas prices typically rise starting in mid-to-late winter and early spring as refineries undergo maintenance ahead of the switch to summer-blend fuel, which is less likely to evaporate in warmer temperatures. The switch occurs first in California, which is why pump prices on the West Coast often rise before other parts of the country. The East Coast is the last major market to switch to summer-blend fuel. Most areas have a May 1 compliance date for refiners and terminals, while most gas stations have a June 1 deadline to switch to selling summer-blend until June 1.
Powell says tariffs may create a “challenging scenario” for the Fed
The Federal Reserve is charged with keeping prices stable and unemployment...
The Federal Reserve is charged with keeping prices stable and unemployment low, but in a speech yesterday, Fed Chair Jerome Powell said the president’s tariffs might make it hard to keep both inflation down and growth up. If that happens, he said, the central bank will consider “how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close” in deciding how to proceed. He said it’s likely the tariffs will cause higher prices and more unemployment in the short term but reiterated that the Fed is waiting for more clarity before making decisions on interest rates.
