WTI Sinks on Trump's New Tariff Threat Against China


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS (DTN) -- Crude futures hit five-month lows on Friday (10/10) after  
U.S. President Donald Trump threatened a "massive increase" in tariffs on China 
as the Chinese government restricted rare-earth exports.  

   So far this year, the Trump administration has levied punitive trade tariffs 
averaging over 50% on Chinese imports, while China has responded with 
retaliatory tariffs averaging just over 30% on U.S. imported goods. China is 
the world's second- largest oil buyer.

   "One of the Policies that we are calculating at this moment is a massive 
increase of Tariffs on Chinese products coming into the United States of 
America," Trump wrote on his Truth Social platform.

   The announcement sent the NYMEX WTI futures contract below the key $60 bb 
psychological support. The U.S. oil benchmark for November delivery closed down 
$2.61 at $58.90 bbl, after an intraday low at $58.70 --- a bottom not seen 
since May 8. The more than 4% drop on the day was also the sharpest since June.

    ICE Brent for December delivery dropped $2.54 to $62.68 bbl after a 
five-month low at $62.52.

   Downstream, November RBOB gasoline futures declined $0.0637 to $1.8189 
gallon, and front-month ULSD futures slumped $0.0779 to $2.2024 gallon.

   The Dollar Index, which typically moves opposite to commodities, also was 
down 0.550 to 98.735.




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