Money Talks - MT Explains: How global events shake oil prices
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CNA
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Trump says 'no extensions' to Aug 1 tariff deadline
WASHINGTON: President Donald Trump said on Tuesday (Jul 8) that he would not extend an Aug 1 deadline for higher US tariffs to take effect on dozens of economies, a day after he appeared to signal flexibility on the date. While Trump imposed a sweeping 10 per cent tariff on goods from almost all trading partners in April, higher rates customised to dozens of economies were unveiled, then halted until Jul 9. But the president this week again delayed their reimposition, pushing it back to Aug 1. Trump insisted that there would be no further delay in the tariffs. "There will be no change," he posted on Truth Social. He added that levies would start being paid on Aug 1, in line with letters now being sent out to trading partners. "No extensions will be granted," Trump said. On Monday night, Trump had told reporters at a dinner that the Aug 1 deadline was "firm, but not 100 per cent firm." Pressed on whether the letters were his final offer, Trump replied: "I would say final - but if they call with a different offer, and I like it, then we'll do it." In a push for further trade deals, Trump sent letters to more than a dozen partners on Monday, including key US allies Japan and South Korea. Products from both countries would be hit with 25 per cent duties, Trump wrote in near-identical letters to leaders in Tokyo and Seoul. Indonesia, Bangladesh, Thailand, South Africa and Malaysia were among other countries facing duties ranging from 25 per cent to 40 per cent. In his messages to foreign leaders, Trump warned of further escalation if there was retaliation against his levies. Most countries receiving the letters so far saw US tariffs at similar or unchanged rates from those threatened in April, although some like Laos and Cambodia saw notably lower levels. The Trump administration is under pressure to show results after promising a flurry of deals following the US president's tariff threats. So far Washington has only struck two pacts, with Britain and Vietnam, besides an agreement to dial back staggeringly high tit-for-tat levies with China. In threatening tariff hikes on various economies, Trump cited in his letters a lack of reciprocity in trading ties. He also warned that goods transshipped to avoid higher duties would be subjected to steeper levels. But he added that if countries were willing to adjust their trade policies, Washington "will, perhaps, consider an adjustment to this letter".
CNA
a day ago
- CNA
Money Talks - MT Explains: How global events shake oil prices
When geopolitical tensions flare up, all eyes turn to oil. But why does this commodity trigger global anxiety? In this episode of Money Talks Explains, energy expert Vandana Hari from Vanda Insights unpacks how changes in oil prices can have a ripple effect through economies – impacting policies, prices and portfolios.
CNA
a day ago
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Oil rises as strong demand outweighs larger-than-expected OPEC+ output hike
HOUSTON : Oil rose more than 1 per cent on Monday on signs of strong demand, shrugging off the impact of a higher-than-expected OPEC+ output hike for August as well as concerns about the potential impact of U.S. tariffs. Brent crude futures rose 79 cents, or 1.2 per cent, to $69.08 by 02:05 p.m. ET (18:05 GMT). U.S. West Texas Intermediate crude was at $67.29, up 29 cents, or 0.4 per cent. The benchmarks had fallen to $67.22 and $65.40, respectively, earlier in the session. "The supply picture definitely looks to be elevating, however, the stronger demand is remaining above expectations as well," Dennis Kissler, senior vice president of trading at BOK Financial. A record number of Americans had been set to travel for the Fourth of July holiday by road and air, travel industry statistics showed. The Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, agreed on Saturday to raise production by 548,000 barrels per day in August, more than the 411,000-bpd hikes they made for the earlier three months. The OPEC+ decision will bring nearly 80 per cent of the 2.2 million-bpd voluntary cuts from eight OPEC producers back into the market, RBC Capital analysts, led by Helima Croft, said in a note. However, the actual output increase has been smaller than planned so far and most of the supply has been from Saudi Arabia, analysts said. In a show of confidence about oil demand, Saudi Arabia on Sunday raised the August price for its flagship Arab Light crude to a four-month high for Asia. Goldman analysts expect OPEC+ to announce a final 550,000-bpd increase for September at the next meeting on August 3. Oil had also come under pressure as U.S. officials flagged a delay regarding when tariffs would begin, but failed to provide details on changes to the rates that will be imposed. Investors are worried that higher tariffs could slow economic activity and oil demand. The United States will make several trade announcements in the next 48 hours, Treasury Secretary Scott Bessent said on Monday, adding that his inbox was full of last-ditch offers from countries to clinch a tariff deal before a July 9 deadline. "Although US trade policy is still unfolding, the U.S. is extending deadlines and backing away from punitive tariffs, helping to lift some of the demand gloom in place since April," said Jeffrey McGee, managing director of advisory firm Makai Marine Advisors. Meanwhile, geopolitical uncertainties continued. Yemen's Iran-aligned Houthis said on Monday that a cargo ship they struck with gunfire, rockets and explosive-laden remote-controlled boats had sunk in the Red Sea, after their first known attack on the high seas this year. Israeli Prime Minister Benjamin Netanyahu is due to meet with Trump at the White House on Monday, while Israeli officials hold indirect talks with Hamas aimed at reaching a U.S.-brokered Gaza ceasefire and hostage-release deal. Iranian President Masoud Pezeshkian said he believes Iran can resolve its differences with the United States through dialogue, but trust would be an issue after U.S. and Israeli attacks on his country, according to an interview released on Monday.
