Oil Futures Surge Amid Federal Trade Court Ruling on Tariffs

Oil futures jumped late yesterday and continue to rise early this morning on news that a Federal Trade Court has ruled the Administrations use International Tariffs does not meet the legal standards under which they were enacted.  Citing the emergency need to stop drug trafficking, 10%-145% tariffs were applied, extended, reduced and extended again over the last several months.  However, the courts ruling now forbids any tariffs or amendments without Congressional approval.  Diesel futures saw $.10 get chipped away over the last week after jumping over $.20 the first half of the month.  With this ruling, it appears that we may pause here for a while to see what, if any, arrows in the quiver the Administration has to ultimately get China to the bargaining table.  Overall fuel demand should pick up this time of year and we may see that in this weeks figures, which will like give a short term boost to pricing.  Markets are focused more now on Worldly factors versus underlying supply and demand domestically.  While OPEC has agreed to keep rates steady through the end of the year, I wouldn’t be surprised if they try to flood the market in an effort to inflict pain on US producers.  Additionally, the Rhetoric War between the US, Ukraine, and Russia has escalated to DEFCON 3, as neither side appears to want to negotiate an end to the fighting.  Expect a bumpy ride the next week or so, as always, DKB can assist in making it smoother for you.