Written on: September 2, 2025
Tuesday, September 2, 2025
Crude oil and refined products futures are trading mixed early Tuesday morning with further losses in global equities and sizeable gains in the US dollar index likely weighing on the price action. Market traders are looking ahead to the final US Manufacturing PMI, the ISM Manufacturing Index and to US construction spending data for further direction.
Asian stock markets closed mostly lower overnight as the Nikkei in Japan added 0.29%, while the Shanghai Composite in China and Hong Kong’s Hang Seng fell by 0.45% and 0.47%, respectively. In European economic news this morning, the flash Harmonized Index of Consumer Prices (HICP) for the Eurozone rose by 2.1% year-on-year in August, as expected. Narrow cores prices rose by 2.3% year-on-year, slightly above the 2.2% forecast. European equities were trading lower this morning with the French CAC 40 down 0.18%, the UK FTSE 100 having lost 0.51%, and with the German DAX having dropped 1.43% lower. In the US, futures for the major stock market indexes were seeing losses of between 0.58% (Dow futures) and 0.99% (Nasdaq futures). Also unsupportive for crude oil prices, the US dollar had appreciated by 0.63% against a basket of foreign currencies as of this writing.
The complex settled in the red on Friday, led by losses of just under two percent in heating oil futures amid a sell-off in global equities and mostly unsupportive economic data out of North America. A slightly weaker US dollar, on the other hand, likely helped limit the downside. Brent crude settled 50 cents weaker at $68.12 a barrel, WTI crude lost 59 cents to settle at $64.01 a barrel, gasoline futures fell by 1.15 cents to close at $2.1876 per gallon, heating oil dropped 4.31 cents lower to $2.2667 per gallon and natural gas futures rose for a fourth consecutive session, settling 5.3 cents higher at $2.997 per MMBTU.
The NHC is tracking a major disturbance in the Eastern Tropical Atlantic, south of the Cabo Verde Islands, and gives it a high 70% chance of cyclone formation over the next 7 days.